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Investing.com - Northland has raised its price target on Planet Labs (NYSE:PL) to $10.00 from $8.00 while maintaining an Outperform rating on the stock. The new target comes as the stock has shown remarkable momentum, delivering a 64% return over the past six months. According to InvestingPro data, the stock is currently trading near its 52-week high, though analysis suggests it may be overvalued at current levels.
The research firm noted that Planet Labs posted 20% growth two quarters ahead of plan and delivered upside in the second quarter of fiscal 2026.
Northland highlighted that Planet Labs now expects to be free cash flow positive for the year, which is a full year ahead of the company’s original plan.
The firm pointed to improving business metrics, including next twelve months (NTM) backlog coverage reaching 86%, up from 81% in the first quarter of fiscal 2026 and 53% a year ago.
Northland also cited a strong and maturing large deal pipeline for Planet Labs, along with emerging unique artificial intelligence opportunities as factors in its decision to increase the price target.
In other recent news, Planet Labs PBC reported its Q2 2025 earnings, revealing a significant revenue increase and a positive earnings surprise. The company achieved an earnings per share (EPS) of -$0.03, surpassing the forecasted -$0.05. Revenue for the quarter reached $73.4 million, exceeding expectations of $66.07 million. These results reflect a strong performance for Planet Labs, as the revenue and earnings figures both surpassed analyst projections. The company’s financial outcomes have garnered attention from investors and analysts alike. Additionally, the earnings announcement led to a surge in investor optimism. While the company’s stock price movement was notable, the focus remains on the earnings and revenue achievements. These developments highlight the company’s recent progress and its ability to outperform market expectations.
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