A Morgan Stanley analyst strips his “underweight” rating as Palantir’s latest results go against three elements of his prior bearish stance.

Palantir Technologies shares powered firmly higher in early Tuesday trading Palantir  (PLTR) , which was added to the S&P 500 last month, has established itself as key player in the defense industry,

Shares of Palantir (PLTR) rose over 20% on Tuesday morning after the data analytics software platform reported third quarter earnings and outlook far above Wall Street’s expectations.

Palantir shares jumped in extended trading on Monday after the analytics software provider topped third-quarter earnings estimates and lifted its full-year revenue outlook amid robust demand for its AI offerings.

Shares in Palantir Technologies Inc. were up over 12% in late trading today after the big data analytics company reported stronger-than-expected earnings and revenue in its fiscal third quarter and revised its full-year outlook upwards.