Shares of Palantir Technologies (PLTR) jumped on Tuesday after earnings results significantly beat expectations last night. Some analysts continue to worry that the analytics software provider is overvalued.

“There is no denying that (Palantir) deserves a premium valuation,” analysts at Mizuho wrote after the company posted 30% revenue growth and raised its 2024 forecast. However, it is becoming “increasingly difficult to justify the valuation of the shares”.

Mizuho, ​​which rates the stock “Underperform,” raised its price target to $37 from $30 – but that still calls for the stock to fall. The stock recently rose about 20% to about $50, more than triple this year; the average price target tracked by Visible Alpha is closer to $33.

Deutsche Bank analysts raised their price target from $21 to $26. Palantir, they wrote, benefits from what it describes as “a stronger following of retail investors compared to everything else we cover.” Palantir trades at about twice the multiple of the second-most expensive stock that covers the bank, analysts said.

CEO Alexander Karp said the company was “absolutely devastated this quarter, driven by unrelenting AI demand that shows no sign of abating.”

The company's U.S. commercial revenue increased 54% to $179 million in the period, and U.S. government revenue increased 40% to $320 million. Executives cited AI-related demand as driving this growth.