Palantir Announces French Intelligence Contract Renewal – Can PLTR Break Resistance?

Palantir's stock (PLTR) bumped into resistance last week, after what has been an impressive rebound off the $155 support level. This morning, the company announced a significant contract renewal with a key international client, potentially giving bulls a boost heading into the final stretch of 2025.

Last week, Palantir's stock price bumped into resistance around the $190 level, culminating in a 2.12% pullback on Friday. This price action coincides with technical indicators suggesting the stock may be overbought, potentially signaling a near-term correction, supported by the RSI reading of 75.55. Despite the recent dip, the stock remains above key moving averages, indicating underlying momentum.

Starting the new week with positive news, Palantir announced a three-year renewal of its contract with the Direction Générale de la Sécurité Intérieure (DGSI), France's domestic intelligence agency.

This extension solidifies a nearly decade-long partnership, focusing on Palantir's proprietary software platform and associated integration, support, and assistance services. The renewal underscores the trust placed in Palantir's solutions by international intelligence agencies.

Mixed Analyst Outlook

Recent analyst ratings present a mixed picture. Bank of America Securities raised its price target for Palantir from $180 to $215, citing stronger growth projections across various applications.

Piper Sandler also increased its price target, moving from $182 to $201, highlighting Palantir's strong revenue visibility and accelerating growth in commercial bookings. Conversely, Freedom Capital Markets adjusted its price target upward from $125 to $170 but maintained a ‘Sell' rating, despite acknowledging the company's revenue growth.

Despite these positive developments, valuation concerns persist. Palantir's high Price-to-Earnings (P/E) ratio of approximately 415 and a discounted cash flow (DCF) valuation significantly below the current market price suggest potential overvaluation. 

Palantir bulls could point to valuation concerns being raised multiple times this year, only to be dismissed by the next wave of upward pressure. Palantir's stock price has gained a mightily impressive 144.14% since the start of 2025, marking the name out as one of the top performers, and pushing the company's market cap to $437 billion.