Planet Labs Pbc's stock plummeted 5.11% during intraday trading on Friday, following negative analyst coverage from New Street Research.
New Street Research initiated coverage on the Earth imaging company with a Sell rating, stating that while Planet Labs has an attractive business, its "valuation is ahead of [its] potential." The research firm launched coverage on 10 space-related stocks, with only four receiving Buy ratings.
The negative assessment from New Street Research comes as the space sector gains attention ahead of SpaceX's planned massive IPO later this year. The analyst's valuation concerns appear to have prompted investor selling pressure on Planet Labs shares during the trading session.
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