Palantir shares rose 3.1% to $190.67 Wednesday after Rosenblatt analyst John McPeake said the Federal Aviation Administration’s deployment of its SMART artificial-intelligence system could still create opportunities for Palantir, despite the company losing the system’s $875 million modernization contract. McPeake reiterated a Buy rating and $225 price target. Air Space Intelligence won the FAA’s 12-year agreement covering the Flow Management Data and Services platform and SMART, which is being deployed around Washington, D.C. Palantir’s potential FAA role rests on its existing relationship with the agency rather than a new contract. The FAA selected Palantir Foundry in 2021 under an $18.4 million agreement covering aircraft certification and safety monitoring, including the Boeing 737 MAX’s return to service. In a later procurement process for additional Foundry licenses and services, the FAA received 51 market-survey responses, narrowed the field to 10 vendors and said Palantir was the only one able to connect with existing systems without significant new development. Palantir reported $809 million in U.S. government revenue in the second quarter, up 90% from a year earlier, compared with $764 million in U.S. commercial revenue. Michael Burry’s reported bearish position, possible short covering and prediction-market activity added to the trading focus, but none changes the fact that Air Space Intelligence holds the primary SMART contract.