Innodata Inc (INOD) shares soared 14.2% in the pre-market session on Thursday, outpacing the broader market. This significant upward move came after Wedbush initiated coverage on the stock with an Outperform rating and a price target of $48, which is substantially higher than its current trading levels.

Wedbush analysts are bullish on Innodata, citing the company's strong positioning in the data annotation and artificial intelligence space. The initiation of coverage with an Outperform rating and a lofty price target suggests that Wedbush expects Innodata's business to perform well in the coming quarters, driven by the increasing demand for data annotation and AI solutions across various industries.

Innodata provides data annotation and artificial intelligence solutions to sectors such as healthcare, financial services, and technology. As more businesses adopt AI and machine learning technologies, the demand for high-quality datasets for training and development is expected to grow, positioning Innodata favorably in this rapidly expanding market.