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Investing.com — Planet Labs PBC (NYSE:PL) shares have gained 16% Wednesday after the stock was given a buy rating by Goldman Sachs (NYSE:GS) analyst Noah Poponak.
The analyst initiated coverage of the public Earth imaging company, also assigning a price target of $11.
“We initiate coverage of Planet Labs (PL) with a Buy rating and $11 price target. Planet is the market leader in commercial earth observation, where the opportunity to sell data analytics into many industries is massive,” Poponak said in a research note.
The analyst added that one of the benefits the company has is first-mover advantage in the strategy of scanning the globe daily with its own low-cost satellites.
“Customer education will be key and take time, but the TAM is huge, and profit margins can be high if volume is there given a scalable model. Shares are down 50% over the last one month with no fundamental change creating an attractive entry point,” concluded Poponak.
