Planet Labs PBC (PL) stock surged 5.67% in pre-market trading on Monday, following the announcement of a significant deal with the European Space Agency (ESA). This agreement is set to enable the Greek government to expand its national space services, marking a notable development for the earth-imaging satellite company.

The deal, signed between Planet Labs and the ESA, is poised to bolster Greece's space capabilities. While specific details of the agreement were not immediately disclosed, investors appear to view this as a positive step for Planet Labs' expansion in Europe and its potential for securing government contracts. The collaboration with ESA, a major player in the space industry, could open doors for similar partnerships with other European countries.

Adding to the positive sentiment, Needham & Company maintained its price target for Planet Labs at $8.00 per share. This reaffirmation of the company's potential, coupled with the new ESA deal, seems to have fueled investor optimism, contributing to the significant pre-market rally. As Planet Labs continues to expand its global footprint and secure strategic partnerships, market watchers will be keen to observe how these developments translate into long-term growth for the company.