Palantir Technologies Inc. continues its meteoric rise, with shares up nearly 150% this year and trading at 245 times forward earnings, making it the most richly-valued company in the S&P 500 Index. Analysts say the company would need to generate $60 billion over the next 12 months to justify its current valuation compared to peers.

Despite its high valuation, Palantir’s stock has become a must-own for portfolio managers aiming to beat performance benchmarks. Analysts are divided on the stock, with more assigning sell or hold ratings than buy. Bulls believe the company’s business performance will support its stock price over the long term, similar to Big Tech elite companies like Netflix.

While some analysts are skeptical about Palantir’s high valuation, others, like Brent Bracelin at Piper Sandler, are optimistic about the company’s aggressive growth potential. Palantir’s recent earnings report was strong, but its high valuation could lead to a selloff if the company fails to meet heightened expectations in the future. Investors remain divided on the stock’s potential for growth and sustainability.

Read more at Yahoo Finance: Palantir’s 2,500% run has bulls scrambling to justify valuation