Planet Labs (PL) Secures $100M Swedish Contract, Stock Rises 24.5% This Week

Written by Emily J. Thompson, Senior Investment Analyst

PL+1.77%

GOOGL-0.84%

GOOG-0.85%

Source: Fool

Updated: 21h ago

0mins

Source: Fool

Contract Signing: Planet Labs secured a military imaging services contract worth over $100 million with Sweden this week, with payments spread over multiple years, further solidifying its position in the government market.
Stock Surge: Following this news, Planet Labs' stock jumped 24.5% this week, bringing its market cap to approximately $9 billion, reflecting strong market confidence in its long-term growth potential.
Analyst Upgrade: Wedbush raised Planet Labs' price target from $20 to $28, with the optimistic outlook from analysts driving further stock price increases, indicating a positive market sentiment regarding its future performance.
Financial Performance: Although Planet Labs generated $35 million in free cash flow over the past twelve months, its revenue of $282 million appears low relative to its current market cap, suggesting potential overvaluation risks for its stock.

$28.78+Infinity%1D

Analyst Views on PL

Wall Street analysts forecast PL stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for PL is 15.41 USD with a low forecast of 10.90 USD and a high forecast of 20.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

9 Analyst Rating

7 Buy

2 Hold

0 Sell

Strong Buy

Current: 28.280

Low

10.90

Averages

15.41

High

20.00

Current: 28.280

Low

10.90

Averages

15.41

High

20.00

Clear Street

Greg Pendy

Buy

maintain

$16 -> $22

Al Analysis

2025-12-29

Reason

Clear Street

Greg Pendy

Price Target

$16 -> $22

Al Analysis

2025-12-29

maintain

Buy

Reason

Clear Street analyst Greg Pendy raised the firm's price target on Planet Labs to $22 from $16 and keeps a Buy rating on the shares. The firm says the company is positioned for 20%-plus sales growth and margin expansion by pairing its proprietary satellite imagery with advanced artificial intelligence. Planet Labs will reinvest its cash flow into growth over the next two years while maintaining profitability, "marking a clear inflection in business maturity and a path to achieving the Rule of 40," the analyst tells investors in a research note. Clear Street says "Rule of 40" data and software names are typically rewarded with premium valuations.

Goldman Sachs

Neutral

maintain

2025-12-16

Reason

Goldman Sachs

Price Target

2025-12-16

maintain

Neutral

Reason

Goldman Sachs raised the firm's price target on Planet Labs to $12.30 from $10.90 and keeps a Neutral rating on the shares. The firm cites the company's better than expected Q3 results, along with Plant Labs having won work with the National Geospatial-Intelligence Agency, NASA and the U.S. Navy in recent months, the analyst tells investors in a research note. Planet Labs has also partnered with Google to deploy prototype satellites for putting data centers in space, the firm added.

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Morgan Stanley

Kristine Liwag

Equal Weight

maintain

$20

2025-12-12

Reason

Morgan Stanley

Kristine Liwag

Price Target

$20

2025-12-12

maintain

Equal Weight

Reason

Morgan Stanley analyst Kristine Liwag raised the firm's price target on Planet Labs to $20 from $4.50 and keeps an Equal Weight rating on the shares. A fiscal Q3 beat and raise, citing strong Defense and Intelligence traction, early satellite services contributions and momentum across multi-year programs support the company's strategic shift, the analyst tells investors.

Clear Street

Buy

maintain

$14 -> $16

2025-12-11

Reason

Clear Street

Price Target

$14 -> $16

2025-12-11

maintain

Buy

Reason

Clear Street raised the firm's price target on Planet Labs to $16 from $14 and keeps a Buy rating on the shares. The company reported strong fiscal Q3 results, significantly beating estimates, and now expects positive annual adjusted EBITDA, which is a "major upgrade" from its prior loss guidance, the analyst tells investors in a research note. The firm upped Planet Labs' growth outlook to reflect its artificial intelligence growth and path to profitability.

About PL

Planet Labs PBC is a provider of global, daily satellite imagery and geospatial solutions. It designs, builds, and operates the earth observation fleet of imaging satellites. It provides mission-critical data, advanced insights, and software solutions comprising agriculture, forestry, intelligence, education and finance companies and government agencies, enabling users to derive value from satellite imagery. Its satellite data and analytics reveal actionable insights regarding phenomena, such as deforestation, agriculture, climate change, biodiversity, and supply chains worldwide. Its daily stream of proprietary data and machine learning analytics, delivered over its cloud-native platform, helps companies, governments and civil society use satellite imagery to discover insights as change happens. Its digital technology platform includes Agile Aerospace, Proprietary Big Data, and Platform and Analytics. Its products include Planet Monitoring, Planet Tasking, and others.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.