Planet Labs stock price target raised to $20 from $8.50 at Cantor Fitzgerald

Investing.com - Cantor Fitzgerald raised its price target on Planet Labs (NYSE:PL) to $20.00 from $8.50 on Friday, while maintaining an Overweight rating on the stock. The new target represents significant upside from the current price of $13.23, following the stock’s impressive 475% surge over the past year. According to InvestingPro analysis, the stock appears overvalued at current levels.

The significant price target increase follows Planet Labs’ recent Investor Day, where the firm’s analysts reassessed their estimates for sales growth, adjusted EBITDA, and free cash flow based on new contract wins.

Cantor Fitzgerald noted some conservatism in its revenue projections, stating it doesn’t fully anticipate the doubling of FY28E revenues implied by company charts, as it awaits increased international awards from F-35 and F-16 allied customers.

The firm’s new valuation approach includes targeting approximately 100x FY28E EV/EBITDA, which it considers a discount compared to select space industry names, while also updating its valuation mechanics from Price/Sales to EV/Sales.

For the EV/Sales metric, Cantor Fitzgerald is targeting a more modest multiple of approximately 10x FY28E, compared to other space companies trading at roughly 15-20x, with the final price target based on an equal weighting of EV/EBITDA and EV/Sales analyses.

In other recent news, Planet Labs PBC has secured a significant contract from the National Geospatial-Intelligence Agency valued at $12.8 million. This contract involves providing AI-enabled Maritime Domain Awareness solutions in the Asia-Pacific region. Additionally, the company renewed a $7.5 million contract with the US Navy for vessel detection and monitoring services, integrating their data into the SeaVision platform. Planet Labs has also extended its partnership with European research organization VITO to enhance Earth observation capabilities, focusing on agriculture and environmental resilience.

In another development, Wedbush analyst Daniel Ives raised his price target for Planet Labs to a street-high $17, citing increased demand for data satellite solutions. Ives maintained an outperform rating, highlighting the company’s momentum in the government sector and its commercial operations rebound. Furthermore, Planet Labs announced the commercial availability of data products from its Tanager-1 hyperspectral satellite. These products include radiance and surface reflectance data, as well as a Methane Quicklook product developed with Carbon Mapper.

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