Rocket Lab USA (RKLB – Research Report), the Industrials sector company, was revisited by a Wall Street analyst today. Analyst Ronald Epstein from Bank of America Securities maintained a Buy rating on the stock and has a $30.00 price target.
Ronald Epstein’s rating is based on Rocket Lab USA’s strategic advancements and growth potential in the aerospace sector. The company is making significant progress with its Neutron medium lift rocket, particularly in developing its Archimedes engine and composite structures, which are crucial for its planned 2025 launch. The focus on vertical integration and in-house engineering efforts is expected to mitigate risks and enhance operational efficiency.
Additionally, Rocket Lab’s potential profitability is tied to the successful demonstration of booster reusability, which could lead to high gross margins similar to its Electron rocket. The company’s expansion into government and defense sectors, along with its involvement in significant programs like the Golden Dome missile defense initiative, further supports its growth trajectory. Furthermore, Rocket Lab’s investments in space systems integration and acquisitions, such as the planned purchase of Mynaric, position it as a competitive player in the space services market. These factors collectively underpin Epstein’s Buy rating for Rocket Lab USA.
In another report released on March 13, Roth MKM also maintained a Buy rating on the stock with a $25.00 price target.