Palantir (PLTR) shares are pushing further to the upside this morning after Loop Capital issued a bullish note in favor of the big data analytics firm. 

On Monday, senior analyst Mark Schappel maintained his “Buy” rating on PLTR shares and raised his price target to a Street-high of $155, indicating potential upside of 13% from their previous close. 

Including today’s surge, Palantir stock is up more than 100% versus its year-to-date low on April 4. 

Why Is Loop Capital Bullish on Palantir Stock?

Loop Capital analyst Mark Schappel remains constructive on Palantir despite an explosive year-to-date rally primarily because it’s “an early software leader in enterprise AI.”

Palantir’s Artificial Intelligence Platform (AIP) is strongly positioned to benefit as AI use cases continue to expand across industries, he told clients in a research note today. 

According to the investment firm, competition concerns appear overblown for now, given the likes of Databricks and Snowflake (SNOW) are geared towards historical data analysis – while PLTR is more for decision-making.  

In his latest report, Schappel recommended that investors build an initial small position in Palantir stock at current levels and then buy it aggressively on pullbacks. 

PLTR Shares Are the Most Expensive in Enterprise Software

Note that PLTR shares are currently going for 142 times estimated 2027 earnings, which makes Palantir more expensive than any other name in the enterprise software space. 

In fact, Palantir stock is overvalued on virtually all valuation metrics at writing. Still, Loop Capital recommends owning it for the firm’s long-term potential in a fast-growing market.

Note that PLTR is seeing accelerated growth across both its government and commercial businesses. 

In its latest reported quarter, the Nasdaq-listed firm reported a 45% increase in its U.S. government revenue while its commercial revenue went up an even bigger 71% on a year-over-year basis. 

Other Wall Street Analysts Recommend Caution on Palantir

Other Wall Street analysts, however, do not agree with Mark Schappel on Palantir shares especially when it comes to valuation. 

According to Barchart, the consensus rating on PLTR stock currently sits at “Hold” only with the mean target of about $105 indicating potential downside of some 25% from current levels.