Planet Labs stock target raised to $6.50 by JMP Securities

On Thursday, JMP Securities analyst Trevor Walsh increased the price target for Planet Labs (NYSE: PL) shares to $6.50, up from the previous $4.50, while maintaining a Market Outperform rating on the stock. Walsh highlighted several key factors that support the company’s potential for long-term capital appreciation. The optimism appears well-founded, as InvestingPro data shows the stock has delivered an impressive 134% return over the past year, with particularly strong momentum in recent months.

The analyst pointed to Planet Labs’ resilient fleet of over 200 satellites, which provides a scalable infrastructure similar to a software business model. This fleet forms the core of Planet Labs’ operations and is seen as a significant asset in the company’s growth strategy.

Additionally, Walsh emphasized the value of Planet Labs’ robust imagery archives. These archives not only create a technical competitive advantage but also act as a proprietary data backbone for emerging artificial intelligence use cases. This combination of deep data archives with AI is expected to fuel growing global interest in earth imagery.

Walsh also noted the company’s diversified revenue streams, with approximately 23.0% coming from commercial sectors and about 77.0% from Defense & Intelligence/Civil Government in the third fiscal quarter of 2025. The recent shift towards prioritizing government business was cited as a strategic move, underlined by the $200 million ceiling value Luno B contract and a deal with the European Space Agency.

Finally, the analyst praised Planet Labs’ dynamic and mission-driven management team. According to Walsh, the team strikes a balance between visionary product leadership and a sharp focus on business execution, which is crucial for the company’s success. This leadership approach has helped maintain strong liquidity metrics, with InvestingPro data showing liquid assets exceeding short-term obligations with a current ratio of 2.34.

In summary, the upgraded price target reflects JMP Securities’ confidence in Planet Labs’ strategic initiatives and its potential to capitalize on its unique position in the satellite imagery market.

In other recent news, Planet Labs has been in the spotlight with significant developments. The company’s stock target was raised to $8 by Needham following the announcement of a substantial new contract valued at $230 million, aimed at serving the Asia-Pacific region. This contract is expected to accelerate the deployment of Planet Labs’ upcoming Pelican constellation.

In addition, Planet Labs has secured a multi-year contract with the European Space Agency (ESA), marking the company’s inclusion in the Copernicus Contributing Missions. This agreement expands ESA’s data portfolio with commercial satellite data from Planet, emphasizing the growing role of New Space companies in the global Earth observation market.

Further, the company has been selected as one of the vendors for the National Geospatial-Intelligence Agency’s (NGA) Luno B commercial data contract, valued at up to $200 million. This indefinite delivery, indefinite quantity contract will enhance the national security community’s access to high-quality commercial geospatial intelligence.

Moreover, Craig-Hallum has updated the price target for Planet Labs’ shares to $3.50, up from the previous $2.50, while maintaining a Hold rating on the stock. This adjustment comes amidst a mix of quarterly financial results and anticipation of the company’s satellite launch. These developments highlight Planet Labs’ active role in the expanding geospatial and Earth observation landscape.

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