Planet Labs (PL) PT Lowered to $2 at Craig-Hallum

Craig-Hallum analyst Jeff Van Rhee lowered the price target on Planet Labs (NYSE: PL) to $2.00 (from $3.00) while maintaining a Hold rating.

The analyst commented: "Numbers were largely as expected for the quarter as was the guide for the Jul’24 quarter. Customer retention remains a concern as existing customers are churning and presenting a considerable headwind that needs to be offset. Revenue growth of 15% y/y (9% y/y organic) is uninspiring for investors and management alike. Many efforts are underway to better leverage channels, remove GTM friction on the direct side and overall make the product easier to consume. Cash ended the quarter at $294M, buying the team considerable time to regain top line momentum and/or right-size the cost structure. Management has noted their goal remains breakeven EBITDA by Q4. Capex for Q2 is expected at $15.5M and to remain at roughly that level for the year. We remain cautious on the shares as we wait for GTM improvements, improved macro backdrop, stickier products/faster time to value and overall a more compelling risk/reward. Maintain HOLD."

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