Shares of Planet Labs (NYSE: PL) surged 24.5% this week due to a new contract with Sweden and a bullish analyst upgrade. The satellite imaging company specializes in providing services to governments and commercial entities, with a stock price increase of over 600% in the past year.

Planet Labs signed a contract with Sweden worth over $100 million for military imaging services, contributing to its backlog growth of over 200% to $734 million. Additionally, a new project with Alphabet called Project Suncatcher is exploring AI data centers in space, leading to a price target upgrade by Wedbush.

With a market cap of around $9 billion and positive cash flow, Planet Labs is attracting investor attention. However, its revenue is smaller than its market cap, with a trailing P/S ratio of 32. Consider the company’s growth potential before investing in its stock.

Read more at Nasdaq: Why Planet Labs Stock Soared 24.5% This Week