Jason Gursky, an analyst from Citi, maintained the Buy rating on Planet Labs PBC (PL – Research Report). The associated price target is $5.00.
Jason Gursky has given his Buy rating due to a combination of factors that highlight Planet Labs PBC’s potential for future growth. Despite a short-term dip in profitability expected in FY26, driven by a shift towards hardware construction and investments in space operations and AI capabilities, the company is poised for revenue acceleration and margin expansion in FY27. The significant backlog, which has doubled year-over-year to $500 million, is a positive indicator of future revenue streams, particularly with the recent contract to build and operate Pelican satellites for Japan’s JSAT.
Furthermore, while the FY26 revenue growth is projected at around 10%, it is expected to more than double in FY27 as satellite construction gains momentum. Although the FY26 adjusted EBITDA guidance fell short of expectations, the strategic investments being made are anticipated to enhance the company’s operational leverage and financial performance in the long run. The expected improvement in free cash flow and the potential for additional contracts from other countries further support the Buy recommendation, with an anticipated share price return of 31.9%.
According to TipRanks, Gursky is a 5-star analyst with an average return of 20.8% and a 61.54% success rate. Gursky covers the Industrials sector, focusing on stocks such as Northrop Grumman, Boeing, and General Dynamics.
In another report released on March 21, Craig-Hallum also maintained a Buy rating on the stock with a $6.00 price target.
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