Palantir (NYSE:PLTR) has had quite a busy year with partnerships and collaborations. This morning, CalypsoAI, an artificial intelligence (AI) security company, announced that it had partnered with Palantir in order to use its FedStart program. FedStart provides service-as-a-software (SaaS) companies with a head start in providing their services to the government, saving time and money in the process.
CalypsoAI’s services include safeguarding sensitive information on public large language models (LLMs) and detecting and verifying the safety of generative AI tools.
“CalypsoAI is a pioneer in AI Security and a recognized leader in the federal sector,” said Palantir USG President Akash Jain.
“At Palantir, we believe in the power of technology to create a better and more secure world, and CalypsoAI’s mission aligns with our focus to deliver the U.S. government leading software at speed.”
PLTR Stock: Palantir Partners With CalypsoAI
CalypsoAI has already worked with government entities in the past, including the U.S. Air Force and the Department of Homeland Security (DHS). Still, the company chose to partner with Palantir in order to provide its services through Palantir’s accredited environment, which could potentially increase the pace of government adoption. The financial terms of the partnership were not disclosed.
Meanwhile, Palantir has confirmed that it will report its third-quarter earnings tomorrow before the market opens. RBC Capital, which carries a $5 price target on PLTR stock, isn’t so upbeat. The price target would imply a downside of about 65% from current levels.
According to RBC analyst Rishi Jaluria, government quarterly contract value declined on a year-over-year (YOY) during the third quarter, which doesn’t bode well for Palantir. Jaluria also believes that PLTR is overvalued based on its shares trading at 7X multiple to enterprise value (EV)/expected 2023 revenue, which is high compared to its software peer group. Instead, the analyst believes that PLTR should trade at a 3X multiple, which led to his $5 price target.
For the quarter, analysts, on average, are forecasting third-quarter revenue of $556 million, which would equate to YOY growth of 16.33%. Palantir is also expected to remain profitable with a GAAP EPS of one cent and an adjusted EPS of six cents.
PLTR stock is pretty much flat this morning at just 0.3% in the green at the time of writing.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
