Planet Labs (PL) PT Raised to $16 at Needham

Needham analyst Ryan Koontz raised the price target on Planet Labs (NYSE: PL) to $16.00 (from $12.00) while maintaining a Buy rating.

The analyst commented: "At its Investor Day event, PL management highlighted the company's strategic focus on satellite service deals and set new financial targets driven by its renewed revenue growth. Management sees rising global defense budgets and both in-house and partner AI capabilities applied to the company's comprehensive data as strong catalysts for deal flow and customer data consumption. As a result, the company will invest capex more aggressively in service upgrades via its new satellite fleets, Pelican and Owl. With its impressive backlog and improving business momentum, PL set a new target to achieve Rule of 40 profitable growth by F28. We modestly raise our F27 estimates and increase our PT to $16."

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