JMP Securities initiated Planet Labs (NYSE:PL) with a Market Outperform rating and a $5.50 price target in a note Tuesday.
Analysts told investors in a note that they like the U.S.-based Earth observation company as it has a "compelling value."
In addition, they noted factors such as the company having a fleet of over 200 satellites "which form the infrastructure for a scalable, one-to-many, software-like business mode."
The company's robust imagery archives "create a technical competitive moat," the analyst wrote, adding that the company is "still nascent in its growth trajectory."
The analysts also noted that it has diversified revenues across both commercial and government, with new verticals gaining traction and that it has a "large and expanding market opportunity, nurtured in part by a passionate customer base and partner ecosystem, enabling the discovery of new applications and use cases for Planet's platform."