Cautious Hold Rating for Planet Labs PBC Amid Mixed Financial Signals and Future Uncertainties

Kristine Liwag, an analyst from Morgan Stanley, maintained the Hold rating on Planet Labs PBC (PL – Research Report). The associated price target is $4.50.

Kristine Liwag’s rating is based on a combination of factors that reflect both positive achievements and future uncertainties for Planet Labs PBC. The company has successfully achieved its first quarter of positive adjusted EBITDA, surpassing expectations, which is a significant milestone. This success is attributed to strong revenue growth and operational efficiencies. However, the outlook for the upcoming fiscal year is less promising, with expectations falling short in terms of gross margins and adjusted EBITDA, alongside increased capital expenditures.
Despite recent contract wins and potential growth opportunities, such as the new JSAT contract and AI-related developments, these ventures are expected to initially impact margins negatively. The management’s guidance for FY26 suggests lower-than-expected financial performance, which tempers the optimism from recent achievements. Consequently, Kristine Liwag has maintained a Hold rating, reflecting a cautious stance amid mixed signals regarding Planet Labs PBC’s near-term financial prospects.