Palantir Technologies may benefit if the federal government steps up oversight of data collected from facial recognition technology systems, an analyst said Tuesday. PLTR stock surged as the Nasdaq composite rebounded.
In a note to clients, Bank of America analyst Mariana Perez Mora said a recent study by the U.S. Government Accountability Office will pressure federal agencies to take more steps to protect data privacy. Mora recently upgraded Palantir stock to buy.
"We see the government's focus on managing (facial recognition) data usage as one area of opportunity for Palantir," said Mora. "The company's Foundry software enables granular access controls, oversight of data usage, and secure cross-agency collaboration."
PLTR stock jumped 8.6% to close at 10.07 on the stock market today. Palantir stock had retreated 49% in 2022.
PLTR Stock: Flak From Facial Recognition?
Palantir sells data analytics software primarily to U.S. government agencies. In addition, Palantir's software is also used for intelligence gathering, counterterrorism and military purposes.
Mora noted that "Palantir has received considerable flak for the implications around privacy rights on its platforms' use of facial recognition technology data." She said many federal agencies do not use the privacy tools that Palantir provides.
The Denver-based software company has been aiming to grow its commercial customer base by expanding into the health care, energy and manufacturing sectors.
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