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On Thursday, Cantor Fitzgerald analysts reiterated an Overweight rating and maintained a $6.30 price target for Planet Labs stock (NYSE: PL), which currently trades at $3.99. The analysts expect the stock to perform strongly following the company’s first quarter of positive free cash flow (FCF), surpassing expectations on adjusted EBITDA and FCF, and modestly increasing its fiscal year 2026 guidance for sales and adjusted EBITDA. According to InvestingPro data, analyst targets for the stock range from $3.50 to $8.00, reflecting diverse market expectations.
The analysts noted that Planet Labs is likely to benefit from a robust catalyst cycle. This includes a significant pipeline of deals similar to JSAT in satellite services, which is favorable for future cash flow. With impressive gross profit margins of 57.65% and a healthy current ratio of 2.13, the company maintains strong operational efficiency. Additionally, there is potential for investors to recognize that government budget requests differ from legislated budgets, which could positively impact market sentiment. InvestingPro subscribers can access 8 additional key insights about Planet Labs’ financial health and growth potential.
The firm expressed optimism about Planet Labs’ ability to exceed its target of sustainable FCF over the next 24 months, driven by the nature of its bid pipeline. The company has demonstrated solid revenue growth of 10.72% and holds more cash than debt on its balance sheet. While specific details were limited, the expectation is that future deals will have similar cash terms as the JSAT deal, potentially enhancing working capital benefits and sustaining FCF over the next 12 months. For detailed analysis of Planet Labs’ financial position and growth prospects, investors can access the comprehensive Pro Research Report available on InvestingPro.
The analysts emphasized the importance of observing the execution of these deals to understand margin and working capital dynamics. They believe these factors highlight the limited supply in the Earth Intelligence sector, suggesting that Planet Labs could be a compelling story throughout the year.
Investors are encouraged to engage with their sales representatives for an upcoming non-deal roadshow with Planet Labs’ President and CFO, Ashley Johnson, scheduled for June 16-18 in Chicago and New York.
In other recent news, Planet Labs reported strong financial results for the first quarter of fiscal year 2026, with revenue reaching $66.3 million, surpassing the expected $62.3 million. This marks a 10% increase year over year and includes an adjusted EBITDA profit of $1.2 million, a significant improvement from the previous year’s loss. The company also achieved its first quarter of positive free cash flow, recording $8 million. Looking ahead, Planet Labs has raised its revenue guidance for fiscal year 2026 to between $265 million and $280 million, with an anticipated adjusted EBITDA loss ranging from $7 million to $12 million. Wedbush analysts have responded by raising Planet Labs’ stock price target to $7, citing the company’s market expansion and innovative AI-enabled solutions. Meanwhile, Citizens JMP analysts maintained their Market Outperform rating and a $6.50 price target, highlighting the company’s ability to exceed expectations in both revenue and earnings. Planet Labs continues to focus on expanding its market presence and enhancing its offerings, particularly in the defense and government sectors.
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