Trump announces trade deal with EU following months of negotiations
On Thursday, Wedbush analysts raised the price target for Planet Labs stock (NYSE: PL) to $7 from $5 while maintaining an Outperform rating, placing it within the current analyst range of $3.50 to $8.00. According to InvestingPro data, the stock has shown strong momentum with a 117% return over the past year. The adjustment follows the company’s decision to increase the low-end of its fiscal year 2026 revenue and adjusted EBITDA guidance.
The company aims to convert its half-a-billion-dollar backlog into significant revenue growth, building on its current revenue growth rate of 10.72%, while investing in innovations for durable profitability. Planet Labs now projects FY26 revenue between $260 million and $280 million, which at the midpoint is slightly below the Street’s estimate of $271.1 million. The company also expects adjusted EBITDA for FY26 to range from ($12 million) to ($7 million), aligning with the Street’s estimate of ($9.5 million).
Planet Labs plans to introduce new AI-enabled solutions with high-resolution and hyperspectral data, aiming to reduce its cash burn by half compared to FY25. The non-GAAP gross margin is anticipated to be between 55% and 57%, in line with the Street’s 56.5% expectation and consistent with the company’s impressive current gross margin of 57.65%. Get deeper insights into Planet Labs’ financial health and growth potential with InvestingPro, which offers 8 additional exclusive tips for this stock.
The company is positioned at the forefront of transformative market opportunities, with new AI-enabled products targeting both government and commercial sectors. With a healthy current ratio of 2.13, Planet Labs maintains strong liquidity to support its growth initiatives. Wedbush analysts see these developments as beneficial for Planet Labs, reinforcing their Outperform rating while raising the price target.
In other recent news, Planet Labs reported impressive first-quarter financial results, which have drawn attention from investors. The company posted a revenue of $66.3 million, exceeding the forecasted $62.36 million, marking a 10% year-over-year growth. This strong performance was bolstered by a positive adjusted EBITDA of $1.2 million, a significant improvement over the anticipated negative figures. Additionally, Planet Labs achieved its first-ever positive free cash flow quarter, recording $8 million, which was a substantial turnaround from an expected negative cash flow. The company’s strategic focus on defense and intelligence sectors contributed to an 8-figure annual contract with a European customer, highlighting its growing market presence. Analysts at Citizens JMP reiterated a Market Outperform rating for Planet Labs, maintaining a $6.50 price target, reflecting confidence in the company’s continued growth trajectory. Looking ahead, Planet Labs projects second-quarter revenue between $65 million and $67 million and anticipates full-year revenue to range from $265 million to $280 million. The company also continues to emphasize strategic partnerships, including collaborations with Anthropic and Google (NASDAQ:GOOGL), to enhance its AI capabilities.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.