Planet Labs PBC (NYSE:PL) Stock Analysis: New Street Initiates Sell Rating Amidst Growth and Valuation Concerns

• Analyst firm New Street initiated a "Sell" rating on Planet Labs PBC (NYSE:PL), citing potential premium valuation despite the company's recent growth in the Earth observation sector.
• Despite the cautious rating, Planet Labs stock has demonstrated strong market performance, gaining 87.5% year-to-date and trading above key moving averages.
• The company exhibits robust financial health with a $900 million backlog, adjusted EBITDA profitability in fiscal 2026, and projected fiscal 2027 revenues between $415 million and $440 million.

Planet Labs PBC (NYSE:PL) is a leading provider of global satellite imagery and data analytics, specializing in designing, building, and operating a large fleet of Earth-imaging satellites. On May 13, 2026, analyst firm New Street initiated coverage on Planet Labs with a Sell rating, setting a cautious tone for the stock's investment outlook.

The Sell rating was issued when Planet Labs stock was trading at $40.74. This perspective may be influenced by the company's premium valuation. As highlighted by Zacks Investment Research, there is an expectation that Planet Labs will continue to experience losses through fiscal 2027, despite its recent growth and positive developments in the geospatial data market.

This rating contrasts sharply with Planet Labs' recent market performance. Shares of Planet Labs have gained 87.5% year-to-date, significantly outperforming its industry peers. The stock is also trading above its 50-day and 200-day simple moving averages, which some investors view as a positive trend signal for future price movement and investor sentiment.

The company continues to secure significant government contracts, bolstering its position in the Earth observation market. A subsidiary recently signed a 7-figure, two-year deal with the Czech Republic to provide AI-powered agriculture monitoring. Another subsidiary also announced a two-year, seven-figure agreement to support Greece's National Satellite Space Project with a range of data offerings, showcasing Planet Labs' diverse capabilities.

Financially, Planet Labs reports a strong backlog of $900 million, which is an increase of 79% year-over-year. The company also achieved adjusted EBITDA profitability in fiscal 2026, a key milestone. For fiscal 2027, it forecasts revenues between $415 million and $440 million with a gross margin of 50% to 52%, indicating robust financial health and growth potential in the satellite data industry.