Investment bank Piper Sandler is bullish on data analytics firm, Palantir Technologies (NYSE:PLTR), noting a resurgence in the company’s U.S. government business.

The investment firm has raised its price target for PLTR stock to $16, reiterating an overweight rating for the data analytics provider. Piper Sandler notes that Palantir’s technologies could offer pertinent solutions to multiple government agencies apart from the Department of Justice.

Piper Sandler analyst Weston Twigg sees the utility of Palantir’s software for agencies beyond the DoD, including the Department of Veterans Affairs and the Department of Energy. If it can gain traction with other agencies, PLTR stockholders may be looking at an incredible upside ahead.

Similarly, investment firm RBC recently upgraded PLTR stock’s rating, citing multiple reasons, including the war in Ukraine. Analyst Rishi Jaluria bumped Palantir’s rating to perform from underperform. Moreover, he boosted the stock’s price target to $12 expecting an increase in spending after the war.

He also points out that the company management is likely to halt investments in shell companies as we advance. The investment strategy has proven to be controversial with its investors, so a change was in order.

The developments are highly encouraging for Palantir’s investors, who had concerns over the deceleration in its government business. Mr. Twigg’s comments about the effectiveness of the company’s products for various government agencies should embolden the bulls.

PLTR stock has shed a fair share of its value of late. However, it has little to do with its strong fundamentals and outlook. The analyst upgrades discussed in the article are only going to strengthen the company’s long-term case.

On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines