Planet Labs PBC (PL – Research Report), the Industrials sector company, was revisited by a Wall Street analyst today. Analyst Josh Sullivan from Benchmark Co. maintained a Buy rating on the stock and has a $7.00 price target.
Josh Sullivan has given his Buy rating due to a combination of factors that highlight Planet Labs PBC’s strategic positioning and future growth potential. The transformative $230 million deal with JSAT is a significant driver, providing upfront cash and reducing cash burn by 50% in FY26, which positions the company towards achieving positive free cash flow in two years. This agreement not only strengthens Planet Labs’ financials but also allows them to sell data feeds to third-party customers, potentially boosting margins.
Additionally, the company’s transition to solutions-based products and the focus on leveraging AI technology from their extensive satellite data library are expected to drive future growth. Despite a slight miss in 4Q:25 sales compared to Street expectations, the positive adjusted EBITDA indicates operational improvements. The company’s strategic refocus on larger customers and the growing backlog of $499 million further support the potential for revenue growth and profitability, justifying the Buy rating.
According to TipRanks, Sullivan is a top 100 analyst with an average return of 29.1% and a 64.52% success rate. Sullivan covers the Industrials sector, focusing on stocks such as FTAI Aviation, Kratos Defense, and VSE.
In another report released today, Craig-Hallum also maintained a Buy rating on the stock with a $6.00 price target.
Questions or Comments about the article? Write to editor@tipranks.com