Planet Labs (PL) PT Raised to $22 at Clear Street

Clear Street analyst Greg Pendy raised the price target on Planet Labs (NYSE: PL) to $22.00 (from $16.00) while maintaining a Buy rating.

The analyst comments "Planet Labs (PL) is positioned for 20%+ top-line growth and margin expansion by pairing its proprietary satellite imagery with advanced AI/ML. Over the next two years, we forecast PL to reinvest cash flow into growth while maintaining profitability, marking a clear inflection in business maturity and a path to achieving the Rule of 40 (revenue growth + EBITDA margin = 40), a profile typically rewarded with premium valuations in data and software names. Key points: • Quality Inflection. We project PL will achieve the Rule of 40 by F2028E. • Convertible Debt. Our outlook now incorporates share dilution. • Optional Upside. Potential upside from collaborations with Anthropic (private) and Alphabet (GOOG, NASDAQ, Not Rated) is excluded from our outlook. PL shares currently trade at 15.9x our F2027E revenue and 12.6x our F2028E. We are raising our target multiple from 10x to a more appropriate 14x F2028E EV/Revenue. This adjustment is driven by PL's credible path to achieving the "Rule of 40" by F2028E, aligning its valuation with high- growth, high-margin data/software peers. This results in a revised price target of $22 (up from $16)."

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