Planet Labs (NYSE:PL) shares jumped nearly 12% to about $25 after the company announced a new multi-year, nine-figure agreement with the Swedish Armed Forces to provide satellites, space-based data, and awareness solutions to support Sweden’s military and security operations.
Under the agreement, Sweden will own a suite of Planet satellites and will have access to the company’s high-resolution data and intelligence products.
Wedbush analysts are bullish on the deal, raising their price target on the stock to $28 from $20. They reiterated an ‘Outperform’ rating, citing accelerating demand from government customers and expanding use cases tied to artificial intelligence.
“We are raising our price target on Planet Labs from $20 to $28 while maintaining our ‘Outperform’ rating as the company continues to see significant demand in government across both the US and International markets while also seeing further tailwinds from AI leading to growing use cases,” the analysts wrote.
Wedbush described the new contract as a major milestone and noted that Planet’s offering allows sovereign nations to access advanced space-based capabilities without the cost and complexity of building standalone systems.
The analysts said the deal reflects Planet’s ability to provide “a cost-effective, low-risk, and fast pathway to advanced space-based capabilities without the prohibitive capital investment and operational complexities of building proprietary standalone systems.”
The Swedish Armed Forces agreement marks Planet’s third nine-figure satellite services contract in the past 12 months. Wedbush estimates that these deals collectively represent roughly $500 million in value, following similar agreements with Japan, through JSAT, and Germany, each aimed at supporting national security requirements.
Wedbush said it continues to view Planet’s technology as mission-critical for a broad range of government applications, particularly in defense and intelligence. The firm highlighted growing international adoption of Planet’s satellite fleet for real-time situational awareness and maritime domain monitoring, as more governments prioritize sovereign access to geospatial data.
The analysts also pointed to continued momentum in government demand globally, with increasing usage from existing accounts. While noting that timelines for closing US government deals can fluctuate, Wedbush said Planet’s backlog tied to US government customers remains strong, supported by rising demand for modernized defense capabilities amid heightened geopolitical tensions.
In addition, Wedbush highlighted Planet’s traction at the intersection of space and artificial intelligence. The analysts wrote that the company is winning seven- and eight-figure contracts with AI as a central component across multiple global defense agencies, reinforcing its strategic positioning.
“As use cases for satellite data applications significantly rise through increased AI integrations, we continue to believe that PL is well-positioned at the intersection of space and AI to capitalize on this rapidly growing market,” the analysts wrote, adding that the company is seeing “accelerated momentum” as interest grows across its full product portfolio.