Palantir Technologies Inc (NYSE:PLTR) shares are trading higher Wednesday. Reports suggest the company is closing in on a contract to overhaul the UK's National Health Service.

What To Know: According to a Bloomberg report, Palantir has emerged as the top pick for a five-year contract with the UK's National Health Service worth up to $579 million.

People familiar with the discussions said the deal is awaiting final approval, but could be announced as soon as this month. It's also possible the deal could be extended for two additional years.

The report indicates that it's considered controversial because several patient advocacy groups have expressed concerns about the data Palantir would have access to. In late August, the agency's chief data officer said software partners would never have access to data for any purpose other than as directed and noted patients would have a say in how their information is used.

Palantir has been working with the UK government since the Covid-19 pandemic, helping oversee the company's vaccine distribution process for a minimal fee, which helped create a positive relationship between the agency and the data firm.

Palantir on Wednesday also announced that it will collaborate with PwC to help clients realize the value of data and AI-enabled operations. PwC will use Palantir's foundry platform to help businesses take actions that create value and transform their work operationally.

Palantir has a Street-high price target of $34 and a Street-low target of $5. The stock is up more than 130% since the start of the year.

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PLTR Price Action: Palantir shares were up 4.23% at $15.51 at the time of publication, according to Benzinga Pro.

Photo: Cory Doctorow from Flickr.