Shares of Red Violet, Inc. (RDVT) soared 5.46% in pre-market trading on Thursday, signaling a strong start for the data analytics company. The significant uptick comes as investors react positively to a recent analyst update.

The catalyst for this pre-market rally appears to be a bullish move by B. Riley, a prominent financial services firm. In a report released early Thursday, B. Riley raised its target price for Red Violet from $62 to $75, representing a substantial increase in their valuation of the company. This upward revision suggests growing confidence in Red Violet's business model and future prospects.

While specific details about the reasoning behind B. Riley's more optimistic outlook were not provided, such target price increases often reflect an analyst's belief in a company's improved growth potential, market position, or financial performance. Investors will likely be watching closely to see if Red Violet can maintain this momentum when regular trading begins and in the days to come.