if the analyst is right and $RKLB (+0.26%) and the C/R ratio improves and I can get in at a lower price despite my deep sleep phase in recent months.
Investing.com - Craig-Hallum initiated coverage of Rocket Lab USA (NASDAQ:RKLB) with a "hold" rating and a price target of $51.00. The stock, which has risen by 778% in the past year and is currently trading at USD 45.33, has shown remarkable momentum with a gain of 64% in the last six months.
Although the analyst firm acknowledged Rocket Lab's successes and development, it considers the share to be "perfectly priced in" with regard to the upcoming launch schedule for the Neutron rocket. This plan envisages one, three and five successful launches in 2025, 2026 and 2027 respectively. An analysis by InvestingPro supports this assessment and shows that the share is currently trading above its fair value, which is also reflected in a high sales multiple and volatile price movements (beta: 2.16).
Craig-Hallum noted that perfect execution in the development of new rocket platforms is historically "virtually unheard of", with delays or failures often leading to significantly greater schedule setbacks than originally anticipated.
The analyst firm also highlighted competitive risks, particularly from SpaceX's Falcon 9 and potentially the Starship in the future. The latter, should SpaceX achieve its rapid reusability goals, could "change the cost paradigm for the entire industry again".
At 28 times estimated revenue for the 2026 financial year, Rocket Lab is trading at a significant premium to other NewSpace companies, which are trading at 7 times revenue. While Craig-Hallum believes this premium is justified given the company's "tremendous track record of execution", he expects "a better entry point with a more favorable risk/reward ratio at a later date".
In other recent news, Rocket Lab USA has been the focus of several notable developments. For example, Citi analyst Jason Gursky raised the price target for the stock from USD 33 to USD 50 and maintained a "buy" rating. This adjustment is based on Rocket Lab's progress in the development of the Neutron rocket and the expected growth in the satellite systems business. Gursky's re-rating takes into account the company's potential revenues in 2029, which are estimated at around USD 2.6 billion.
Rocket Lab has also awarded a contract to Bollinger Shipyards to build an ocean-going landing platform for its reusable Neutron rocket. The platform, named "Return On Investment", is scheduled for delivery by early 2026 and will be equipped with advanced support equipment for rocket landings at sea. Meanwhile, Cantor Fitzgerald has reiterated its Overweight rating and $35 price target on Rocket Lab following the company's recent successful satellite launches. These developments underscore Rocket Lab's continued efforts to expand its capabilities and market reach in the aerospace sector.
