Planet Labs (PL) Stock Forecast & Price Target

Planet Labs PBC is projecting a FY27 revenue of $311 million, representing a 17% increase, alongside an adjusted EBITDA of $19.2 million, indicating a path toward improved profitability fueled by effective cost controls. The company recently secured a significant $230 million contract in the APAC region, which is expected to enhance its balance sheet and drive the deployment of its Pelican satellite constellation, further solidifying its growth trajectory. With expectations for accelerating growth rates, potentially reaching 30% and improving metrics aligned with the Rule of 40 by FY27, Planet Labs shows strong potential for positive financial performance in the coming years.

The financial outlook for Planet Labs PBC appears negative due to several significant challenges, including potential material headwinds from the EOCL deal, which could impact financial performance in FY27. Key concerns involve near-term losses associated with creating a new industry, along with supply constraints and satellite management issues that hinder operational efficiency. Additionally, slow customer growth and extended sales cycles, stemming from hesitance around the perceived value of geospatial data in emerging verticals, further contribute to the unfavorable financial outlook.