Planet Labs (PL): Evaluating Valuation Following New Satellite Shipments, Berlin Expansion, and Major Contract Wins

Planet Labs PBC (NYSE:PL) is in the spotlight after shipping its latest Pelican-5 and Pelican-6 satellites for an upcoming launch with SpaceX, and announcing plans to expand production in Berlin. These moves closely follow strong contract wins with European partners.

See our latest analysis for Planet Labs PBC.

Momentum has clearly picked up for Planet Labs, with shares rallying for six straight days as a wave of new satellites, strong contract wins, and plans to double production capacity in Europe all signal accelerating demand and business expansion. While recent share price returns have been relatively modest, the company’s 1-year total shareholder return of nearly 6% suggests steady long-term gains as operational milestones accumulate and growth prospects improve.

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But with shares climbing and operational wins piling up, the question now is whether Planet Labs remains undervalued or if the recent surge means that the market has already priced in all the good news. Is there still a buying opportunity here?

Most Popular Narrative: 35.4% Overvalued

According to andreas_eliades, the narrative sets Planet Labs' fair value at $11.31 per share, which falls notably below the latest closing price of $15.31. This gap in values is driven by a cautious view of current market enthusiasm compared to the pace of financial progress and contract growth.

Planet Labs leads the EO market with the largest satellite constellation. The company is positioned to capitalize on the growing demand for Earth Observation and geospatial data from companies and governments. Plunging space launch and GPU computation costs, along with advancements in CubeSat and AI technologies, are enhancing the utility of Earth Observation data.

Read the complete narrative.

Want to know which game-changing revenue drivers and future margin assumptions power this valuation call? What makes Planet Labs’ expansion story so captivating to investors? The full narrative spotlights key industry expectations and bold financial projections that might explain the sharp pricing gap. Don’t miss the insights that could change how you view this stock.

Result: Fair Value of $11.31 (OVERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, a sudden slowdown in satellite launches or delays in commercial adoption could quickly challenge the positive outlook for Planet Labs' future growth.

Find out about the key risks to this Planet Labs PBC narrative.

Build Your Own Planet Labs PBC Narrative

Curious to see if your perspective differs, or want to dig into the numbers yourself? You can build your own take for Planet Labs in just a few minutes, and truly Do it your way

A great starting point for your Planet Labs PBC research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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