Planet Labs PBC (NYSE:PL) Raised to "Neutral" at New Street Research

Key Points

• New Street Research upgraded Planet Labs from “sell” to “neutral.” Overall analyst sentiment remains “hold,” with an average price target of $33.56.
• Planet Labs reported a quarterly earnings beat, posting $0.02 EPS versus an expected $0.02 loss, while revenue climbed 58.2% year over year to $116.05 million.
• Despite strong growth and defense-sector demand, the stock faces risks from weaker-than-expected third-quarter revenue guidance, continued GAAP losses and recent insider selling.

Planet Labs PBC (NYSE:PL - Get Free Report) was upgraded by equities researchers at New Street Research from a "sell" rating to a "neutral" rating in a research report issued to clients and investors on Friday, MarketBeat Ratings reports.

A number of other brokerages have also weighed in on PL. Wedbush began coverage on shares of Planet Labs PBC in a report on Wednesday, July 1st. They set an "outperform" rating and a $50.00 price objective on the stock. Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating and set a $36.00 price target on shares of Planet Labs PBC in a research report on Monday, June 15th. Zacks Research upgraded Planet Labs PBC from a "strong sell" rating to a "hold" rating in a research note on Thursday, July 2nd. Northland Securities set a $50.00 price objective on Planet Labs PBC in a report on Friday, June 5th. Finally, Berenberg Bank initiated coverage on Planet Labs PBC in a research note on Wednesday. They issued a "buy" rating and a $25.00 price objective for the company. One investment analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, Planet Labs PBC currently has an average rating of "Hold" and an average price target of $33.56.

Planet Labs PBC Stock Performance

Shares of Planet Labs PBC stock opened at $18.42 on Friday. The company has a 50 day moving average price of $23.84 and a 200 day moving average price of $30.12. The firm has a market capitalization of $6.56 billion, a P/E ratio of -16.16 and a beta of 2.10. The company has a quick ratio of 2.78, a current ratio of 2.81 and a debt-to-equity ratio of 1.01. Planet Labs PBC has a 52 week low of $6.26 and a 52 week high of $51.76.

Planet Labs PBC (NYSE:PL - Get Free Report) last released its earnings results on Thursday, September 3rd. The company reported $0.02 earnings per share for the quarter, topping the consensus estimate of ($0.02) by $0.04. Planet Labs PBC had a negative net margin of 111.17% and a negative return on equity of 105.29%. The company had revenue of $116.05 million for the quarter, compared to the consensus estimate of $104.53 million. During the same quarter in the previous year, the firm earned ($0.07) EPS. Planet Labs PBC's revenue was up 58.2% compared to the same quarter last year. Sell-side analysts expect that Planet Labs PBC will post -0.92 EPS for the current year.

Insider Buying and Selling

In related news, CFO Ashley Johnson sold 75,035 shares of Planet Labs PBC stock in a transaction that occurred on Thursday, July 23rd. The stock was sold at an average price of $22.08, for a total transaction of $1,656,772.80. Following the completion of the transaction, the chief financial officer directly owned 1,132,122 shares in the company, valued at approximately $24,997,253.76. This trade represents a 6.22% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Robert Schingler sold 25,000 shares of the business's stock in a transaction that occurred on Friday, July 10th. The shares were sold at an average price of $25.92, for a total value of $648,000.00. Following the completion of the transaction, the insider directly owned 225,171 shares of the company's stock, valued at $5,836,432.32. The trade was a 9.99% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 171,122 shares of company stock valued at $4,148,906 over the last ninety days. Company insiders own 16.42% of the company's stock.

Institutional Trading of Planet Labs PBC

A number of hedge funds have recently added to or reduced their stakes in PL. American Capital Advisory LLC purchased a new position in Planet Labs PBC in the first quarter valued at $28,000. Western Wealth Management LLC acquired a new stake in shares of Planet Labs PBC during the 1st quarter valued at about $28,000. Pittenger & Anderson Inc. grew its position in shares of Planet Labs PBC by 40.9% during the 1st quarter. Pittenger & Anderson Inc. now owns 1,360 shares of the company's stock valued at $38,000 after acquiring an additional 395 shares during the period. Whittier Trust Co. of Nevada Inc. purchased a new position in shares of Planet Labs PBC in the 1st quarter valued at about $41,000. Finally, Parkside Financial Bank & Trust increased its stake in shares of Planet Labs PBC by 92.5% in the 4th quarter. Parkside Financial Bank & Trust now owns 1,550 shares of the company's stock valued at $31,000 after purchasing an additional 745 shares in the last quarter. 41.71% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting Planet Labs PBC

Here are the key news stories impacting Planet Labs PBC this week:

• Positive Sentiment: Strong Q2 execution: Planet reported adjusted earnings of $0.02 per share, versus expectations for a $0.02 loss, while revenue rose 58.2% year over year to $116.1 million, exceeding the $104.5 million consensus estimate. The company said this was its fourth consecutive quarter meeting or exceeding the Rule of 40. Planet Reports Financial Results for Second Quarter of Fiscal Year 2027
• Positive Sentiment: Analyst upgrade: Berenberg Bank upgraded Planet Labs PBC (PL) to “strong buy,” potentially providing support after the recent selloff and signaling confidence in the company’s long-term satellite-imaging and data opportunity.
• Positive Sentiment: Defense demand: Planet signed a seven-figure agreement with a European defense and intelligence customer. The contract adds to investor enthusiasm about government and national-security applications for Planet’s Earth-imaging data, following its broader defense-related momentum. Planet Signs 7-Figure Agreement with European Defense and Intelligence Customer
• Neutral Sentiment: Long-term growth debate: Coverage comparing Planet Labs with Snowflake highlights PL’s approximately 200-satellite constellation and daily Earth-imaging capabilities, but also reflects the stock’s growth-oriented, higher-risk valuation profile.
• Negative Sentiment: Near-term guidance disappointed: Planet forecast fiscal third-quarter revenue of $101 million to $105 million, below the $114.3 million analyst consensus. Full-year fiscal 2027 revenue guidance of $430 million to $441 million was near consensus, but the quarterly shortfall likely outweighed the earnings beat for some investors.
• Negative Sentiment: Recent selling pressure: PL previously declined even after announcing the defense contract, as investors reduced exposure to commercial space stocks. Planet remains unprofitable on a GAAP basis, with a negative net margin and return on equity, adding to valuation sensitivity.

Planet Labs PBC Company Profile

Planet Labs PBC is a public benefit corporation that operates one of the largest fleets of Earth-imaging satellites, providing high-frequency, high-resolution imagery and data analytics to a broad range of industries. The company's multi-spectral satellite constellation captures daily snapshots of the planet, enabling clients to monitor changes in agriculture, forestry, urban development, energy infrastructure and environmental conditions. Planet's imagery platform is designed to support timely decision-making by transforming raw satellite data into actionable insights for business and government users.

Founded in 2010 by former NASA scientists Will Marshall, Robbie Schingler and Chris Boshuizen, Planet Labs grew from a small startup into a key provider in the satellite imaging sector.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source