Needham analyst Ryan Koontz maintained a Buy rating on Planet Labs PBC (PL – Research Report) today and set a price target of $8.00.
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Ryan Koontz has given his Buy rating due to a combination of factors, primarily focusing on Planet Labs PBC’s recent contract wins and the promising growth trajectory these suggest. The company announced several significant contracts, including a substantial multi-year satellite services agreement with the German government, which underscores its expanding role in providing sovereign solutions to allied governments.
These developments, coupled with management’s positive outlook on a robust pipeline of similar opportunities, bolster confidence in the company’s potential to achieve over 20% topline growth by 2026. Although large contracts can initially increase costs before revenue fully ramps up, the pre-payment provisions in the German contract are expected to enhance working capital, positioning Planet Labs PBC favorably for future demand.
Koontz covers the Technology sector, focusing on stocks such as Extreme Networks, Coherent Corp, and Arista Networks. According to TipRanks, Koontz has an average return of 1.0% and a 48.05% success rate on recommended stocks.
In another report released on June 27, Northland Securities also maintained a Buy rating on the stock with a $8.00 price target.