Palantir Technologies PLTR moved back into focus after receiving a Wall Street upgrade, with analysts pointing to improving earnings trends and a more balanced valuation following a steep pullback in the stock.

D.A. Davidson upgraded Palantir to Buy from Neutral and raised its price target to $175 from $165. Analyst Gil Luria said Palantir’s earnings growth has helped narrow valuation concerns and argued that the company’s AI orchestration platform may strengthen its position as enterprise customers seek flexible artificial intelligence solutions.

Palantir shares have retreated about 39% from their 52-week high, though the company continued to post strong operating performance. Palantir reported first-quarter revenue of $1.63 billion, up…