This article first appeared on GuruFocus.

Palantir Technologies (NASDAQ:PLTR) is heading into its next quarterly report with a higher valuation benchmark from Citi, which lifted its price target to $250 from $245 while keeping a Buy rating.

Analyst Tyler Radke’s revised target reflects the bank’s expectation that Palantir will deliver a strong fiscal third quarter, supported by continued activity in U.S. government work and commercial deals. The update raises Citi’s previous estimate by $5 without changing its positive rating on the shares.

Citi expects momentum in both customer groups to help the data analytics and artificial intelligence software provider perform well…