When a stock climbs 578% in a year, you'd think analysts might get cautious. Not Dan Ives. The Wedbush analyst just bumped his price target on Planet Labs Inc. (PL) to $28 from $20, suggesting another 10.58% upside from Tuesday's close at $25.32.
What's driving the optimism? According to Ives' note reported by MarketWatch, it's the "significant demand" for Planet Labs' satellites and data across U.S. and international markets, particularly in defense and intelligence applications. But there's more to the story than just satellites circling the planet.
Where Space Meets AI
Ives positioned Planet Labs at "the intersection of space and AI," highlighting the potential for increased use cases in solar data applications through AI integration. It's the kind of forward-looking pitch that gets investors excited about tech companies operating in multiple hot sectors simultaneously.
The company has backing from Google (GOOGL), which holds nearly an 11% stake. That vote of confidence from one of tech's giants hasn't hurt sentiment, especially as Planet Labs continues to rack up major contracts.
Half a Billion in Contracts
The momentum picked up significantly after Planet Labs announced a multi-year, nine-figure satellite services deal with the Swedish Armed Forces. The agreement provides satellites, high-resolution data, and intelligence solutions to support Sweden's security operations.
This marks the company's third major satellite services contract in the past year, bringing total agreements to over $500 million. Previous deals included contracts with Japan and Germany, showing genuine international appetite for Planet Labs' capabilities.
The numbers back up the hype. In December 2025, Planet Labs reported a 33% year-over-year revenue increase for the third quarter of fiscal 2026, driven by the launch of two high-resolution Pelican satellites and 36 SuperDove satellites. Perhaps more impressive: the company's backlog jumped 216% year-over-year to $734 million as of October 31, 2025.
Analyst Support Builds
Ives isn't the only one getting enthusiastic. Needham analyst Ryan Koontz issued his own bullish note, highlighting that Planet Labs' strong balance sheet positions it to generate positive free cash flow in fiscal 2026 and 2027. Koontz also praised the company's execution and noted plans to accelerate its next-generation Pelican and Owl constellations.
According to data from MarketDash, Planet Labs has demonstrated strong price trends across short, medium, and long-term timeframes, with its momentum ranking hitting the 99th percentile.
On Tuesday, shares closed 0.47% lower at $25.32, a minor pullback after a rally that's seen the stock soar 578.82% over the past year. If Ives is right, there might be more fuel in the tank.
