Wedbush analyst Dan Ives has raised his price target for Planet Labs Inc. (NYSE:PL) to $28 from $20, reflecting a growing confidence in the company’s satellite technology and data services. This adjustment follows a remarkable increase in the firm’s stock price, which has surged over 500% in the past year. The new target suggests an upside of 10.58% from the stock’s closing price of $25.32 on Tuesday.
Ives emphasized the “significant demand” for Planet Labs’ offerings, particularly in U.S. and international defense and intelligence sectors. He pointed out the potential for expanding applications of solar data, particularly through the integration of artificial intelligence, positioning Planet Labs at “the intersection of space and AI.” His insights were shared in a note on Monday and reported by MarketWatch.
Major Contracts and Financial Performance Drive Growth
The momentum for Planet Labs has been bolstered by a substantial multi-year satellite services agreement with the Swedish Armed Forces, which involves providing high-resolution data and intelligence solutions to enhance Sweden’s security operations. This contract is notable as it marks Planet’s third significant satellite services deal within the past year, contributing to a total contract value exceeding $500 million, which includes previous agreements with Japan and Germany.
In December 2025, Planet Labs announced a 33% year-over-year increase in total revenue for the third quarter of fiscal 2026, driven by the successful launch of two high-resolution Pelican satellites and 36 SuperDove satellites. Additionally, the company’s backlog reached $734 million as of October 31, 2025, reflecting a remarkable 216% year-over-year growth.
The positive financial results have garnered further confidence from analysts. Ryan Koontz, an analyst at Needham, noted the strength of Planet Labs’ balance sheet, which supports expectations of generating positive free cash flow in both fiscal 2026 and fiscal 2027. He commended the company’s plans to accelerate the development of its next-generation Pelican and Owl constellations.
Market Performance and Future Outlook
According to Benzinga Edge Stock Rankings, Planet Labs demonstrates a robust price trend across short, medium, and long-term horizons, with a momentum ranking in the 99th percentile. This performance illustrates strong investor confidence and suggests sustained interest in the company’s innovative capabilities in the field of satellite technology.
Over the past year, shares of Planet Labs have soared by 578.82%, showcasing the market’s positive reception to the company’s strategic initiatives. On Tuesday, the stock closed slightly lower, down 0.47% to $25.32.
As Planet Labs continues to expand its influence in the rapidly evolving space technology sector, the latest developments signal a promising trajectory for future growth and innovation.
