Citizens JMP Raises Planet Labs Price Target to $8, Keeps Outperform Rating

Citizens JMP analyst Trevor Walsh raised Planet Labs' price target to $8 from $6.50 and maintained an Outperform rating. The analyst notes that recent discussions and headlines point to key themes that may influence the company, including the FY26 national defense budget request and Operation Spiderweb, a significant moment in drone warfare.

Citizens JMP analyst Trevor Walsh recently increased Planet Labs' (PL) price target to $8, up from $6.50, while maintaining an "Outperform" rating. This move comes amid key themes within the Aerospace & Defense sector that are expected to impact Planet Labs in both the short and long term.

The analyst cited the fiscal year 2026 national defense budget request and strategic initiatives like Operation Spiderweb, which plays a significant role in drone warfare, as factors influencing the company's future operations. Additionally, national security alignment remains a priority for commercial space operators, which could potentially affect Planet Labs' operations.

According to the latest Wall Street analyst forecasts, the average target price for Planet Labs is $6.74, with a high estimate of $9.00 and a low estimate of $4.00. The consensus recommendation from 11 brokerage firms is currently "Outperform," indicating a positive outlook on the company's future performance [1].

Planet Labs reported $66.3 million in revenue for Q1 fiscal 2026, representing a 10% year-over-year growth. The company achieved a non-GAAP gross margin of 59%, up from 55% a year ago. Notably, Planet Labs reported its first-ever quarter of positive free cash flow at $8 million. The defense and intelligence sector revenue grew over 20% year-over-year, driven by strong performance in core data and solutions business [2].

Despite these positive developments, Planet Labs faces challenges, such as a decrease in revenue from the civil government sector due to the expiration of the NICFI contract and flat commercial sector revenue. The company expects an adjusted EBITDA loss for Q2 fiscal 2026, indicating ongoing financial challenges.

Institutional investors have also shown interest in Planet Labs, with several large investors increasing their stakes in the company. For instance, Xponance Inc. grew its stake by 12.0% during the 4th quarter, and Mackenzie Financial Corp increased its stake by 32.1% during the 1st quarter [2].

Overall, while Planet Labs faces some headwinds, the analyst's increased price target and the sector's key themes suggest potential growth opportunities for the company in the coming years.

References:
[1] https://www.gurufocus.com/news/2992390/planet-labs-pl-price-target-raised-amid-sector-themes-pl-stock-news
[2] https://www.marketbeat.com/instant-alerts/planet-labs-pbc-nysepl-stock-price-down-6-time-to-sell-2025-07-22/