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Deutsche Bank expanded its coverage within the space sector to earth observation stocks with two names singled out as looking attractive or investors.
The firm initiating coverage on BlackSky Technology (NYSE:BKSY) and Planet Labs PBC (NYSE:PL) with Buy ratings.
Analyst Edison Yu noted that the space sector is often viewed as nascent and highly capital intensive. However, Deutsche Bank’s positive stance on earth observation companies is in part due to them not falling prey to those qualities.
“Planet and BlackSky are both generating substantial revenue now and have visibility toward future growth similar to software companies. Moreover, the capital required to deploy satellite constellations is far lower than in the past.”
Deutsche Bank assigned a price target of $3 on BlackSky (BKSY) to rep more than 65% upside potential for shares. The firm tagged Planet Labs PBC (PL) with a price target of $7 to rep around 40% upside.
Compare valuation and growth metrics on BKSY and PL.
