Craig-Hallum raises Planet Labs stock price target to $7.00 from $6.00

On Thursday, Craig-Hallum analysts increased the price target for Planet Labs stock (NYSE: PL) to $7.00 from $6.00, maintaining a Buy rating. Currently trading at $3.99, the stock sits within a broader analyst target range of $3.50 to $8.00. The adjustment follows the company’s recent quarterly performance, which exceeded expectations on both revenue and profit fronts.

The analysts highlighted significant momentum in Planet Labs’ business, particularly in maritime awareness, which saw substantial wins driven by demand in EMEA for sovereign capabilities to monitor global oceans. The company’s impressive 57.65% gross profit margins and 10.72% revenue growth reflect this positive momentum. Additionally, the Space Services sector showed promise with a notable $230 million contract over seven years with JSAT.

While the company faces potential challenges, such as anticipated budget cuts to EOCL, which generated $10.6 million in revenue this quarter, Craig-Hallum remains optimistic. The analysts noted that these challenges contrast with the commercial purchasing goals of the Trump administration.

Despite these hurdles, the company’s forward guidance has been modestly raised. Planet Labs’ balance sheet remains robust, and the company is confident in achieving positive sustainable free cash flow within the next 24 months.

The analysts emphasized that Planet Labs is well-positioned to benefit from trends toward commercial purchasing, with sovereigns seeking dedicated access to imagery and leveraging AI for data insights.

In other recent news, Planet Labs reported a strong first quarter with revenue reaching $66.3 million, surpassing the estimated $62.3 million and marking a 9.6% year-over-year increase. The company also achieved its first quarter of positive free cash flow, totaling $8 million, and an adjusted EBITDA of $1.2 million, a significant improvement from the previous year’s loss. Wedbush analysts responded to these results by raising Planet Labs’ stock price target from $5 to $7, citing the company’s market expansion and increased fiscal year 2026 guidance. Cantor Fitzgerald analysts maintained an Overweight rating with a $6.30 price target, highlighting Planet Labs’ positive cash flow and potential benefits from future deals in satellite services. Citizens JMP analysts reiterated a Market Outperform rating, noting the company’s ability to exceed expectations in revenue and earnings. Additionally, Planet Labs anticipates fiscal year 2026 revenue between $265 million and $280 million, with an adjusted EBITDA loss projected between $7 million and $12 million. The company aims to introduce new AI-enabled solutions and reduce its cash burn by half compared to the previous fiscal year.

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