In a note on Tuesday, analysts pointed out that the number of cell phone users in 1980 was only 900,000 in 2000. The actual number of cell phone subscriptions that year was over 100 million. These early forecasts also did not take into account the advent of mobile apps and smart devices.

“We see Palantir’s (PLTR) capabilities, technology and future prospects facing a similar fundamental misunderstanding,” wrote BofA analysts led by Mariana Perez Mora. “The impending inclusion in the S&P 500 represents a turning point for institutional investors to rethink their ‘knowledge’ of PLTR.”

BofA reiterated its buy rating on Palantir shares and raised its price target from $30 to $50. The new target represents an upside of 40.5 percent from the stock’s closing price on Friday. And that’s after shares had already shot up last week following news that the company would be added to the S&P 500 later this month and have more than doubled since the beginning of the year.

A major misconception on Wall Street is Palantir’s unconventional sales strategy, in which engineers play a key role. While investors say this approach limits scalability and profitability, BofA sees it differently.

“We believe this approach makes PLTR solutions significantly more relevant to users and gives PLTR greater pricing power,” the statement said. “Engineers get close to the customer’s mission and help shape the product to deliver real value.”

As Palantir continues to add more customers in the public and private sectors, BofA sees a huge opportunity for the company to become the common data operating system for the U.S. government and large U.S. companies.

Palantir is known for its work in defense and intelligence, but is also expanding into the commercial sector.

In a video released Tuesday, CEO Alex Karp took a victory lap to celebrate Palantir’s addition to the S&P 500. He also mentioned Wall Street’s misconceptions about the company, which developed and offered products that were a decade ahead of the competition and enabled entire companies to use AI and large language models.

“It’s still so radical that people don’t quite grasp it,” Karp said. “They don’t understand how we were able to flip a switch and get to GAAP profitability. And how we went from what adults, professional managers and some analysts thought was a Frankenstein monster driven by a freak show leader – me – to a dynamic, clearly profitable company that deserves to be included in the S&P 500.”

Palantir has gone its own way and ignored popular opinion, he added, but also praised the small investors who have maintained their trust in the company.

“Everyone in the company and around the world should celebrate the rebels’ victory,” he said.