Planet Labs PBC (NYSE:PL) shares are trading higher on Thursday after Wedbush maintained an Outperform rating and raised its price target from $11 to $17.
What To Know: Wedbush analyst Dan Ives cited rising demand across government and commercial sectors as key drivers behind the price target increase. The analyst highlighted Planet Labs’ growing backlog, which now stands at approximately $735 million, representing significant year-over-year growth, with about 35% expected to convert over the next 12 months.
The company has experienced its first year-over-year commercial growth in over two years, marking a turnaround in what had been a weak segment. Planet Labs’ AI-enabled solutions have gained traction across agriculture, insurance and energy sectors, leveraging Nvidia’s Jetson AI platform integrated into its Pelican satellite fleet.
Defense and intelligence use cases are also fueling steady deal momentum for Planet Labs, according to Ives. The company has landed several seven- and eight-figure contracts with major defense organizations like the Defense Innovation Unit, U.S. Navy, National Reconnaissance Office and NATO. The Wedbush analyst also noted that global interest is rising, with NATO and Germany now using Planet's satellite tech for situational awareness and maritime monitoring.
“As more use cases for solar data applications arise, Planet continues to see accelerated momentum with the company's advanced satellite data capabilities and AI integrations that are leading to multi-year contracts as the company looks to capitalize on its growing addressable market opportunity for its products,” Ives said in a note to clients.
Wedbush noted that while U.S. government contract timelines can fluctuate, the company’s government backlog remains robust amid rising geopolitical threats and increased demand for modernized defense capabilities. Ives added that more and more international governments are recognizing the importance of geospatial data solutions for sovereign space access.
PL Price Action: Planet Labs shares were up 9.04% at $15.02 at the time of publication on Thursday, according to Benzinga Pro.
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