12 Best Aerospace and Defense Stocks to Buy According to Analysts

4. Planet Labs PBC (NYSE:PL)

Number of Hedge Fund Holders: 19

Analyst Upside Potential: 60.57%

Planet Labs PBC (NYSE:PL) is a leading provider of global, daily satellite imagery and geospatial solutions. The company designs and operates a large fleet of Earth observation satellites, including the Dove, RapidEye, SkySat,  and more. It serves multiple sectors, including agriculture, forestry, intelligence, education, finance, and government agencies. Their data helps these sectors monitor changes, optimize operations, and make informed decisions.

On March 25, Jason Gursky, an analyst from Citi maintained a Buy rating on the stock with a price target of $5. He noted that Planet Labs PBC (NYSE:PL) has a significant backlog that has doubled to $500 million year-over-year, indicating strong future revenue streams. This includes a recent contract to build and operate Pelican satellites for Japan’s JSAT. However, the company expects a short-term dip in profitability in FY26 due to investments in hardware construction and AI capabilities. However, it is poised for revenue acceleration and margin expansion in FY27. Revenue growth is projected to be around 10% in FY26 with expectation to more than double in FY27 as satellite construction gains momentum. The analyst anticipates a share price return of 31.9%. Planet Labs PBC (NYSE:PL) is one of the best aerospace and defense stocks to buy according to analysts.

Meridian Contrarian Fund stated the following regarding Planet Labs PBC (NYSE:PL) in its Q4 2024 investor letter:

“Planet Labs PBC (NYSE:PL) is a data and analytics company powered by its constellation of 200+ satellites that capture daily images of the entire Earth. This provides the company with a unique dataset which they combine with custom imaging capabilities to build applications for commercial and government customers. We invested in 2022 when significant investments the company made for future growth impacted near-term earnings. During the quarter, Planet Labs’ stock outperformed due to rising market recognition that their cost-effective and efficient imagery solutions were well-positioned to increase penetration in the U.S. defense sector. Optimism was further buoyed by the prospect of the incoming administration pursuing cost-cutting and efficiency initiatives. We increased our position during the quarter, confident in Planet Lab’s capacity for sustained growth.”