The company impressed one market professional at its recent investor day.
Planet Labs (PL 3.58%) stock had a good start to the trading week on Monday. That’ll happen when an analyst increases their price target by more than 30%, which is what occurred before the market opened that morning. Planet Labs enjoyed an over 3% lift to its share price as a result, which outpaced the 1.1% rise of the bellwether S&P 500 (^GSPC 1.07%).
A 33% boost
The pundit responsible for the raise was Needham’s Ryan Koontz, who now feels Planet Labs is worth $16 per share; he previously placed a $12 price target on the stock. In making the change, Koontz maintained his buy recommendation on the shares.
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According to reports, the analyst made his change on the basis of presentations made during the company’s investor day. He wrote that management emphasized its strategic focus on satellite services arrangements. The company is also encouraged by what it expects to be rising defense budgets from governments around the world.
Given all that, Koontz raised his estimates modestly for Planet Labs’ fiscal 2027, which begins early in calendar year 2026.
Growth in the ether
Planet Labs’ main activity is the provision of detailed geographic data on Earth from a network of satellites. It’s still consistently loss-making, however, despite some impressive revenue growth. It’s therefore a risky investment, and should only be considered by investors comfortable with such plays.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.