PL - Planet Labs: At The Heart Of The Emerging New Space Boom

2024-02-20 07:48:46 ET

Summary

• Planet Labs leads the EO market with the largest satellite constellation, poised to capitalize on the growing demand for Earth Observation and geospatial data from companies and governments.
• Plunging space launch and GPU computation costs combined with advancements in CubeSat and AI technologies are boosting the utility of Earth Observation data.
• Planet Labs' equity stakes in startups utilizing its data for innovative EO-based products signal potential for additional growth and indirect exposure to the burgeoning EO startup market.
• The Earth Observation industry is poised for a period of high growth, with Planet Labs maintaining a leading position in the market.
• Using a combination of Valuation, Quant and Future factors, Planet Labs' stock is initiated as a 'BUY'.

Planet Labs ( PL ) has disappointed investors following its $2.8 billion SPAC IPO in December 2021, with valuations plummeting to well below the $1 billion mark. In this article, I will demonstrate why I consider Planet stock to be an especially appealing investment within an industry that remains largely underappreciated, yet is highly likely to experience a significant expansion over the coming decade.

Investment Thesis

The anticipated growth of Planet Labs is tied to and catalysed by the expansion and technological advancements in adjacent sectors. Significant innovations and cost efficiencies in aerospace launch services and AI/ML are poised to propel the Earth Observation (EO) industry beyond its current growth projections over the next decade....

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