Planet Labs falls after analysts lower price target on widened FQ1'23 loss

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• Planet Labs (PL) fell by ~20% after analysts lowered the price target on the Earth imaging company in the wake of FQ1'23 results.
• PL posted a net loss that widened from the year-ago period.
• The company's FQ1'23 GAAP EPS was -$0.17, in-line; while revenue was $40.13M (+25.6% Y/Y) beats by $0.63M.
• For FQ2'23, Planet Labs expects revenue to be in the range of ~ $41M to $43M. For FY23, the revenue outlook is expected to be in the range of ~ $177M to $187M.
• The FQ2'23 consensus revenue estimate stands at $42.14M, while FY23 estimate is $181.32M.
• Craig-Hallum Analyst Jeff Van Rhee lowered the price target on PL to $10 from $15, considering reduced peer multiples and the lack of current/expected profitability.
• Benchmark Analyst Josh Sullivan lowered the price target to $11 from $15, citing market multiples, FY23 guidance narrowing and customer metrics.
• Needham Analyst Ryan Koontz cut the price target to $8 from $10.50.
• The 3 analysts maintained a Buy rating on the shares.