BTIG analyst Andre Madrid has reiterated their neutral stance on RKLB stock, giving a Hold rating on March 14.
Andre Madrid’s rating is based on several factors influencing Rocket Lab USA’s current position and future prospects. The company has achieved a significant milestone by being included in the US Space Force’s NSSL Phase 3 Lane 1 program, which presents a potential $5.6 billion opportunity. However, Rocket Lab cannot bid on these task orders until its Neutron rocket successfully launches, which is scheduled for the second half of 2025. This limitation contrasts with competitors like SpaceX, ULA, and Blue Origin, who have already completed successful launches.
While the inclusion in the NSSL program is a positive step, there are concerns about Neutron’s history of delays and cost overruns. Additionally, Rocket Lab’s valuation is high compared to its peers, trading at a high-teens NTM EV/Sales multiple. Although the company’s strong government customer base provides stability, the developmental milestones and high valuation levels warrant a cautious approach, leading to the Hold rating.