Planet Labs price target lowered to $7 from $8 at Needham

Needham lowered the firm’s price target on Planet Labs to $7 from $8 but keeps a Buy rating on the shares. The company’s Q2 results were in-line but Planet Labs also saw further slowing in new deal closures drive another reduction in its F24 revenue outlook, the analyst tells investors in a research note. Needham adds that specific deal slips impacted the company’s Civil Government sector, where Planet Labs is building a new business model with little competition but challenges on bureaucratic budget processes. The firm further notes that despite the near-term headwinds, Planet Labs is emerging as a leader in global earth observation.