New Planet Labs Price Target Amid Parabolic Rise
We're setting the Wall Street high on the satellite company following a major deal with a European government.
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A week ago, I wrote to my "Stocks Under $10" crowd and raised my target price for Planet Labs (PL) from $17 to $26. The last sale was $23 at the time, and the stock had been on a run.
Well, gang, it looks like the "SU$10" portfolio/column has produced yet another runaway winner. Dudes, I hate to sound arrogant, but we have crushed everyone on every level that I know of on Wall Street for three consecutive years going on four. Yeah, I know that sounds bad, but I also know that I put in more hours and work a lot harder than those guys because I held their jobs. I also get to directly enjoy the fruits of my labor. They have no actual skin in the game.
There Was Some News
Earlier this week, Planet Labs announced a multi-year, low-nine-figure (in dollar terms) agreement with Sweden's Armed Forces to deliver a suite of satellites, space-based data and awareness solutions to support the country's peace and security operations. The Swedish government will own a suite of Planet Lab satellites and gain access to the data provided.
Adjusting Planet Labs
Planet Labs will not be reporting until mid-March, so perhaps there is news that is yet to hit the tape, but the stock ticked at $26 on Wednesday, held the level on Thursday and is still going higher on Friday morning.
Readers will see that I eliminated the primary pivot at $20 that I spoke of last week. Even taking that line up to the secondary pivot ($21) does not technically justify a move like this. Relative strength is so overbought that it's almost gone. Below the chart, the daily MACD is more bullish than some of the ranches I hike past on my nature treks.
The New Plan
Alright. First, I will take something off because my target price got obliterated. That's discipline 101. Secondly, I've got to get out of the way and see how parabolic this thing wants to get.
For that reason, I am lifting my target price to $40 from $26 because I don't want to sell anymore after what I sell after this piece goes public. The $40 target price will re-establish our target as the Wall Street high.
At the time of publication, Guilfoyle was long PL equity.
