The rise comes on the back of months of decline for the stock.

William Blair's $200 price target implies that shares of Palantir could surge 36% from current levels.

Global conflicts and a large U.S. defense budget could boost the beaten-down stock, analysts say.

Palantir topped Wall Street's fourth-quarter estimates as more businesses and the U.S. government race to buy its artificial intelligence tools.

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The rise comes on the back of months of decline for the stock.

Analysts remained overwhelmingly bullish on Palantir, although the company's lofty valuation stood out as a sore spot for some.