Shares of Planet Labs PBC (NYSE:PL) came under pressure in early trading on Tuesday, even after the company reported strong fiscal second-quarter results a day earlier.
- PL stock is struggling to find support. Review the technical setup here.
Here are some takeaways from analysts:
- Citizens JMP Securities analyst Trevor Walsh maintained a Market Outperform rating, while raising the price target from $8 to $11.
- Needham analyst Ryan Koontz reiterated a Buy rating, while lifting the price target from $8 to $12.
Check out other analyst stock ratings.
Citizens JMP Securities: Planet Labs reported robust quarterly results, with revenue of $73.4 million and adjusted EBITDA of $6.4 million coming in significantly higher than consensus of $66.0 million and $3.7 million, respectively, Walsh said in a note. The company generated positive free cash flows for the second consecutive quarter, he added.
The company guided to revenues of $71.0 million-$74.0 million for the fiscal third quarter and of $281.0 million-$289.0 million for the full year, higher than the consensus of $66.0 million and $273.4 million, respectively, the analyst stated.
"Management guidance for non-GAAP gross margins for F3Q26 and F4Q26 (implied) at 55.5% and 49.0% at the midpoint, respectively, are both historically low compared to the typical range of high 50s to low 60s," he further wrote.
Needham: Planet Labs generated 20% year-on-year revenue growth and reported the highest sequential growth in three years, Koontz said. The revenue beat was driven by strong growth in the Defense and Intelligence segment, which grew 40% year-on-year, he added.
Total RPO and cRPO (current remaining performance obligations) grew by 516% and 153% year-on-year and by 53% and 9%, respectively, the analyst stated. Although the company raised its full-year revenue guidance, it guided to flat revenues for the next two quarters, suggesting "slowing spending from U.S. federal constraints," he further wrote.
PL Price Action: Planet Labs shares were down 3.57% at $9.31 at the time of publication on Tuesday. The stock is trading near its 52-week high of $9.70, according to Benzinga Pro data.
Read More:
Photo: PJ McDonnell from Shutterstock
