Planet Labs Navigating Extended Defense Sales Cycles: Analyst Cuts Price Target By 23%
Portfolio Pulse from Shivani Kumaresan
Benchmark analyst Josh Sullivan has reiterated a Buy rating on Planet Labs PBC (NYSE:PL) but lowered the price target from $6.5 to $5. This comes after PL reported 2QFY24 revenues of $53.8 million, slightly below the Street’s $54.1 million. FY24 revenue guidance was also reduced due to extended defense sales cycles. Despite a 13.3% drop in share price, the analyst believes PL is in a position to control costs and consolidate attractive but financially stressed assets.
September 08, 2023 | 6:20 pm
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Planet Labs' price target has been lowered from $6.5 to $5 by Benchmark analyst Josh Sullivan due to extended defense sales cycles and reduced FY24 revenue guidance. Despite a 13.3% drop in share price, the company is seen as capable of controlling costs and consolidating attractive assets.
The lowered price target and reduced FY24 revenue guidance indicate a bearish outlook for Planet Labs. The extended defense sales cycles could lead to further delays in revenue generation. However, the company's ability to control costs and consolidate attractive assets could mitigate some of these negative impacts.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100