Palantir Technologies (NASDAQ:PLTR) climbed more than 5% Friday morning as retail investors shrugged off skepticism from Wall Street analysts ahead of the company's first-quarter earnings, due on May 5.

Jefferies analyst Brent Thill called the stock's valuation doesn't make any sense, despite projecting 62% earnings growth this quarter. While revenue is expected to jump 36% to $862 million, Thill maintains an Underperform rating and a $60 target. Shares last traded near $118, pricing the company at 69 times its estimated 2025 earnings, an S&P 500 high.

The stock's run has split Wall Street. Price targets range from $40 to $130. Some see Palantir as overpriced; others see it as the "Tesla of software." But its loyal base of retail investors continues to drive the rally, now owning roughly 41% of shares, well above typical levels.

Palantir's platform, which originated from post-9/11 intelligence work, now supports customers from Wendy's to Cleveland Clinic. Its 2024 revenue was 55% government-driven, though commercial business is rising fast.

Is PLTR Stock a Buy Now?

Based on the one year price targets offered by 20 analysts, the average target price for Palantir Technologies Inc is $90.04 with a high estimate of $125.00 and a low estimate of $40.00. The average target implies a downside of -26.52% from the current price of $122.53.

This article first appeared on GuruFocus.