Planet Labs stock price target raised to $12 from $8 at Needham

Investing.com - Needham raised its price target on Planet Labs (NYSE:PL) to $12.00 from $8.00 on Tuesday, while maintaining a Buy rating on the stock following the company’s strong fiscal second-quarter results. The stock, which currently trades near its 52-week high of $9.71, has delivered an impressive 403% return over the past year according to InvestingPro data.

Planet Labs reported fiscal Q2 2026 results that showed 20% year-over-year revenue growth, marking the highest quarter-over-quarter growth in three years. With robust gross profit margins of 59% and a healthy balance sheet showing more cash than debt, the company’s guidance for fiscal Q3 and second half revenue came in above consensus expectations.

The Defense & Intelligence segment was a standout performer, with sales increasing 40% year-over-year, driven primarily by international business. Management highlighted several major wins and renewals, including contracts for Maritime Domain Awareness.

Planet Labs successfully launched its third and fourth next-generation Pelican satellite units, while securing $500 million in satellite services contracts with Japan and Germany that are now in the company’s backlog.

Needham noted that global geopolitical realignment continues to drive strong demand for sovereign commercial solutions as countries seek to reduce dependence on U.S. intelligence, positioning Planet Labs for "transformative earnings results in out years." The company’s current market capitalization stands at $3 billion, with a strong liquidity position as current assets exceed short-term obligations.

In other recent news, Planet Labs reported strong fiscal second-quarter results, with revenue reaching $73.4 million, marking a 20% year-over-year growth and surpassing consensus expectations of $66.0 million. The company also posted an earnings per share (EPS) of -$0.03, beating the forecasted -$0.05. In light of these results, JMP Securities raised its price target on Planet Labs to $11.00 from $8.00, maintaining a Market Outperform rating. Similarly, Northland increased its price target to $10.00 from $8.00, noting the company’s growth was achieved two quarters ahead of plan.

Additionally, Planet Labs announced plans to offer $300 million in convertible senior notes due 2030 to qualified institutional buyers, with an option for initial purchasers to buy up to an additional $45 million in notes to cover over-allotments. This move is aimed at raising capital, although it led to a 7% drop in the company’s stock in after-hours trading. These developments indicate a period of significant activity and strategic financial planning for Planet Labs.

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