The brokerage cut its price target to reflect relative valuations as fund flows have reduced multiples in the space sector.

  • Planet Labs’ Q2 revenue surged 58% to $116.1 million, beating Wall Street’s estimate of about $104 million, according to Fiscal.ai data
  • Defense and intelligence revenue jumped 94% to about $81 million and accounted for about 70% of total revenue.
  • Clear Street called Planet Labs’ upcoming Owl satellite program a ‘major catalyst.’

Shares of Planet Labs (PL) gained around 10% on Friday after the Earth-imaging company delivered a blowout second quarter, prompting Craig-Hallum to highlight accelerating demand from defense and intelligence customers.

However, the firm cut its price target amid concerns that investor fund flows have reduced multiples across the space sector. Craig-Hallum lowered the price target by roughly 28.6% to $35 but maintained a ‘Buy’ rating, according to The Fly.  

The pre-market rebound came after PL shares fell to their lowest level in more than eight months in the previous session.

Defense And Intelligence Business Nearly Doubles

Planet Labs’ Q2 revenue surged 58% to $116.1 million, topping Wall Street’s estimate of about $104 million, according to Fiscal.ai data. The firm also posted a surprise profit of $0.02 per share, compared to consensus estimates of a $0.02-per-share loss.

Defense and intelligence revenue jumped 94% to about $81 million, accounting for about 70% of total revenue.

Craig-Hallum said Planet Labs is “on a roll” in defense and intelligence verticals, with the business positioned to continue “exploding.”

Despite the Q2 earnings beat, the company guided third-quarter (Q3) revenue to $101 million to $105 million, below Wall Street expectations of roughly $114 million.

Clear Street Sees Owl Satellite Program As Major Catalyst

Clear Street called Planet Labs’ upcoming Owl satellite program a “major catalyst,” pointing to strong early customer interest. Planet has stated that Owl, its next-generation monitoring satellite, will improve resolution and reduce latency.

Clear Street lowered its target to $51 from $53 while keeping a ‘Buy’ rating, citing modest share dilution. Overall, Planet Labs has a $38.73 consensus 12-month price target, with eight of 12 analysts rating the stock a ‘Buy.’

Retail Says PL Stock Is ‘Overpriced’

Retail sentiment surrounding PL on Stocktwits trended in the ‘extremely bullish’ territory over the past 24 hours, amid a 1,024% increase in message volumes.

One user called the stock “overpriced” and expects it to drop below $15, implying a 25% downside from current levels.

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Another user called PL’s outlook “conservative.”

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PL shares have gained a marginal 1.6% so far in 2026.

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