Planet Labs shares are up 616% in the last 12 months. / Photo: Facebook / Planet Labs
Shares of mid-cap satellite data provider Planet Labs climbed almost 6% on Wednesday, January 14, reaching a new all-time high. Over the past two days, three Wall Street analysts have raised their target prices for the stock, with the most bullish call implying upside of over 12% from current levels. Over the last 12 months, Planet Labs has surged more than 600%.
Details
Planet Labs shares rose 5.6% to $26.70 per share on Wednesday, marking an all-time high. In early trading on Thursday, the stock extended the gains, adding about 4%.
On Tuesday and Wednesday, three Wall Street analysts raised their target prices, data from Benzinga shows.
Citigroup lifted its target price by nearly 60% to $30 per share, reiterating a “buy” rating. The new valuation implies upside of more than 12% versus the Wednesday close.
Wedbush raised its target price by 40% to $28 per share, about 5% above current levels, and maintained its “outperform” rating.
Morgan Stanley, while increasing its target price by 30% to $26 per share, was the most cautious of the three. It reiterated its “equal weight” rating as its target price is still below current market prices.
Overall, Planet Labs has eight “buy” ratings versus three “hold” ratings from Wall Street analysts, according to MarketWatch data. The consensus target price stands at $24.20 per share, below the current market price.
Rationale
Wedbush analyst Dan Ives said he raised his target price due to “significant demand” for Planet Labs’ satellites and data in U.S. and foreign markets., MarketWatch reported.
On Monday, the company announced a multiyear, nine-figure agreement with the Swedish armed forces, under which Planet Labs will supply satellites, space-based data, and intelligence solutions. The deal is the company’s third such contract in the past 12 months. Previous agreements were signed with Germany and Japanese satellite operator JSAT, with the combined value of the three contracts exceeding $0.5 billion, Planet Labs said. The company also holds several U.S. government contracts, including a $13.5 million agreement to provide data to NASA, MarketWatch added.
In its most recent quarterly report, for the third quarter of its fiscal 2026, Planet Labs said its order backlog tripled year over year to $734 million. Revenue rose a third to a record $81.3 million, and the company reached breakeven for the first time on earnings per share. Following the financials, the stock jumped 35%. “Recent quarterly reports have sent its stock to the moon. Its most recent one after Wednesday’s close of trading, might send it to Mars,” Barron's wrote at the time.
“We continue to believe that the company provides mission-critical use cases for a wide array of government applications, especially defense and intelligence,” Ives said in a Monday note to investors, as quoted by MarketWatch. Later this year, Planet Labs aims to demonstrate new satellites that are expected to deliver higher-resolution images analyzed by artificial intelligence in under an hour.
Meanwhile, the firm and Google are working together on Project Suncatcher, Google’s experiment to develop constellations of solar-powered satellites carrying Google’s tensor processing units. They would essentially function as AI data centers, which some think could provide massive amounts of cheap energy and mitigate the potential of an AI-fueled energy crisis, MarketWatch explains. “As use cases for solar data applications significantly rise through increased AI integrations, we continue to believe [Planet Labs] is well-positioned at the intersection of space and AI to capitalize on this rapidly growing market,” Ives was quoted as saying.
