New Palantir Price Target After Polish Defense Partnership

In mid-September, we lifted our price target for the shares of Palantir Technologies (PLTR) to $205, a move that continued a series of previous price target increases.

On Monday, we are taking that PLTR target higher once again to $220 following a string of positive developments. As we make this adjustment, we will also lift our panic point to $150 from $145, and our pickup point to $172 from $160.

We are making these adjustments to reflect a few things. Over the last several weeks, we’ve received multiple data points about increasing AI adoption and usage. So far this earnings season, we’ve also heard more companies discussing their internal usage of AI to drive productivity and cost savings. Not surprising given the margin pressure concerns we raised with you a few weeks back. Other signals confirm increasing defense spending levels for countries outside the U.S.

Those “general” comments are supportive of Palantir, but there have also been some company-specific developments.

On Monday, Poland’s Defense Minister Wladyslaw Kosiniak-Kamysz and Palantir Chief Executive Officer Alex Karp signed a letter of intent on data, artificial intelligence and cybersecurity. Polish state news agency PAP reported that Kosiniak-Kamysz said the defense ministry had adopted a strategy to develop artificial intelligence and create a new AI center within its military structures. Neither Poland nor Palantir shared the size of the deal, but given the rising defense spending levels outside the U.S. mentioned above, this is likely the first such announcement for Palantir.

Second, last week, Palantir announced an expanded its partnership with Lumen Technologies (LUMN) that will bring artificial intelligence to the enterprise via Palantir’s Foundry and Artificial Intelligence Platform and Lumen's next-generation digital networking tool, Lumen Connectivity Fabric.

Industry estimates peg this “multi-year, multi-million-dollar strategic partnership” that targets the commercial and public sectors at about $200 million. That makes it a nice win, but with consensus revenue forecasts calling for Lumen to hit $12 billion this year, we suspect that estimate could be more than a bit conservative. We’ll look to see what Palantir has to say when it reports on November 3 and what Lumen may say about this later this week.

Also last week, Snowflake (SNOW) and Palantir announced a partnership that will integrate Snowflake's AI data cloud with Palantir's artificial intelligence platform. This partnership aims to enable customers in the commercial and public sectors to build more efficient and trusted data pipelines, faster data analytics and AI applications.

Here, too, we’ll look to say what additional comments Palantir makes about this relationship next week. We’ll also be tracking total contract value and remaining performance obligation figures exiting the September quarter, comparing them to those at the end of the June 2025 and March 2025 quarters. What we’re looking for is numerical confirmation of companies, governments and other entities' adoption of Palantir’s solutions. Based on what we learn, if we need to fine-tune our new PLTR price target, we’re up to the task.

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At the time of publication, TheStreet Pro Portfolio was long PLTR.