Analysts Have Been Trimming Their Planet Labs PBC (NYSE:PL) Price Target After Its Latest Report
Planet Labs PBC (NYSE:PL) just released its quarterly report and things are looking bullish. The results overall were pretty good, with revenues of US$116m exceeding expectations and statutory losses coming in at justUS$0.03 per share, some 59% below what the analysts had forecast. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Planet Labs PBC after the latest results.
Taking into account the latest results, the current consensus from Planet Labs PBC's 13 analysts is for revenues of US$436.6m in 2027. This would reflect a solid 15% increase on its revenue over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 42% to US$0.58. Before this earnings announcement, the analysts had been modelling revenues of US$436.1m and losses of US$0.53 per share in 2027. Overall it looks as though the analysts were a bit mixed on the latest consensus updates. Although revenue forecasts held steady, the consensus also made a pronounced increase to its losses per share forecasts.
See our latest analysis for Planet Labs PBC
With the increase in forecast losses for next year, it's perhaps no surprise to see that the average price target dipped 13% to US$34.82, with the analysts signalling that growing losses would be a definite concern. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Planet Labs PBC at US$50.00 per share, while the most bearish prices it at US$25.00. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Planet Labs PBC's growth to accelerate, with the forecast 33% annualised growth to the end of 2027 ranking favourably alongside historical growth of 19% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 6.2% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Planet Labs PBC is expected to grow much faster than its industry.
The Bottom Line
The most important thing to take away is that the analysts increased their loss per share estimates for next year. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Planet Labs PBC going out to 2029, and you can see them free on our platform here.
You still need to take note of risks, for example - Planet Labs PBC has 3 warning signs we think you should be aware of.
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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.