Planet Labs initiated with a Buy at Citi

Citi analyst Jason Gursky initiated coverage of Planet Labs with a Buy rating and $6 price target. The company is a provider of geospatial data and analytics, largely focused on government markets, that should grow 29% through 2025 and begin generating cash in that year, "suggesting a funded business plan," the analyst tells investors in a research note. The firm sees 37% upside from current share levels. For space-related names, Citi prefers business models that have a demonstrated ability to quickly ramp revenue given the finite lives of the assets being deployed or that provide the "picks and shovels to those deploying them."