Morgan Stanley Raises Planet Labs Target to $35

1 week ago 5

Joel South

Wed, March 25, 2026 astatine 9:36 AM CDT 4 min read

Planet Labs (PL) has a grounds backlog of $900M with Remaining Performance Obligations astatine $672.47M, up 361% year-over-year, supported by large authorities contracts including a €240M multi-year German authorities statement and $12.8M NGA Luno B declaration for AI-enabled Maritime Domain Awareness. Morgan Stanley raised its terms people to $35 from $26, citing beardown defence and quality request and outer services traction, though the steadfast maintains Equal Weight owed to near-term borderline unit from investments.
Planet Labs’ enlargement into AI-enabled outer solutions, including its Pelican-3/4 satellites launched successful November 2025 and a Google concern targeting TPU-powered AI computing successful abstraction prototypes by 2027, positions the institution to seizure increasing request astatine the intersection of outer information and artificial intelligence.
Have You work The New Report Shaking Up Retirement Plans? Americans are answering 3 questions and galore are realizing they tin discontinue earlier than expected.

Planet Labs PBC (NYSE:PL) has staged 1 of the much melodramatic recoveries successful the small-cap abstraction implicit the past year. Shares person gained astir 812% implicit the trailing 12 months, rising from $4.00 to a 52-week precocious of $36.38. Year to date, the banal is up much than 78%, including much than 50% conscionable successful the past week.

The Street statement people sits astatine $31.11. Morgan Stanley conscionable raised its terms people to $35, implying further upside to the $35 target. But tin PL realistically scope $35 by extremity of 2026?

Morgan Stanley raised its terms people connected Planet Labs to $35 from $26 portion maintaining an Equal Weight rating. The steadfast cites grounds backlog of astir $900 cardinal arsenic the superior enactment for maturation visibility, alongside beardown request crossed Defense and Intelligence and traction successful Satellite Services. The expert acknowledges the bull lawsuit is tempered by investment-driven borderline unit weighing connected near-term profitability, explaining the determination to clasp alternatively than upgrade contempt the higher target.

Have You work The New Report Shaking Up Retirement Plans? Americans are answering 3 questions and galore are realizing they tin retire earlier than expected.

Government and defence declaration momentum: Planet Labs has secured high-value authorities awards, including a $12.8M NGA Luno B declaration for AI-enabled Maritime Domain Awareness, a $13.2M NRO renewal, a $13.5M NASA task order, and a €240M multi-year German authorities agreement. This government-heavy gross basal provides declaration durability that supports semipermanent compounding.
AI-enabled solutions and next-generation outer capacity: The institution launched Pelican-3 and Pelican-4 via SpaceX connected November 28, 2025 and acquired Bedrock Research to accelerate AI for distant sensing. A Google concern to research TPU-powered AI computing successful abstraction targets prototype launches successful 2027, positioning Planet Labs astatine the intersection of outer information and AI with expanding addressable markets.
Revenue predictability done backlog growth: Remaining Performance Obligations reached $672.47M, up 361% year-over-year, and 97% of yearly declaration worth is recurring. Full-year FY2026 gross guidance of $297M-$301M reflects accelerating maturation from $244.35M successful FY2025.