$RKLB (+0,45%) from Morgan Stanley.
Investing.com - The US space company Rocket Lab USA (NASDAQ:RKLB) could become one of the most important listed competitors of Elon Musk's SpaceX in the future. Morgan Stanley is convinced of this - and has raised its price target for the shares significantly from USD 20 to USD 68.
The investment bank points to the growing demand for satellite launches and capacities in space, from which Rocket Lab should benefit greatly. Although Morgan Stanley is maintaining its "equal weight" rating, the company's potential is greater than the market has priced in so far.
Rocket Lab is regarded as a leading provider of small rocket launches. With its Electron rocket, the company has now launched more than 230 satellites into orbit in 72 missions. The next growth step is already imminent: the significantly larger Neutron rocket is due to be launched for the first time this year. According to Morgan Stanley, it should initially take off on a test flight in 2025 and complete up to twelve missions a year by 2029. The reusability of the rocket should ensure better margins in the long term.
In addition to the launch business, Rocket Lab is also expanding its Space Systems segment, which manufactures components and satellites. The company is also planning its own network - similar to SpaceX's Starlink system.
Morgan Stanley anticipates that Rocket Lab will still make losses in the initial phase of the Neutron rocket. However, turnover for the company as a whole is expected to grow by around 41% annually between 2025 and 2029. The analysts expect free cash flow to be positive for the first time from 2027.
To justify its new price target, the bank refers to SpaceX's valuation benchmark, whose estimated enterprise value has risen from around USD 100 billion to around USD 400 billion since 2021.
Despite the positive outlook, the valuation remains ambitious, it said. Morgan Stanley points to risks in the implementation of the Neutron program and warns that much is already reflected in the current share price. Nevertheless, Rocket Lab should continue to benefit from the high demand for satellite launches and further mission successes.
