Citi analyst Jason Gursky maintained a Buy rating on Rocket Lab USA (RKLB – Research Report) today and set a price target of $33.00.
Jason Gursky has given his Buy rating due to a combination of factors that highlight Rocket Lab USA’s potential in the market. Despite uncertainties surrounding the Space Development Agency’s (SDA) Transport Layer, Rocket Lab is currently engaged in a significant $515 million contract as part of SDA’s Tranche 2 buy. This involvement positions the company well for future opportunities, even as the SDA considers alternative acquisition strategies that might affect future contracts.
Additionally, while there are delays in the construction of the Transport Layer due to technological developments, Rocket Lab’s proactive steps to acquire key suppliers for satellite technology demonstrate its strategic foresight. Although the debate over the SDA’s acquisition approach could create some uncertainty, the expected share price return of 84.6% suggests strong market confidence in Rocket Lab’s growth prospects. This potential for substantial returns underpins Gursky’s Buy rating, indicating optimism about the company’s future performance.
Gursky covers the Industrials sector, focusing on stocks such as Northrop Grumman, Boeing, and Rocket Lab USA. According to TipRanks, Gursky has an average return of 19.6% and a 61.64% success rate on recommended stocks.
In another report released yesterday, Cantor Fitzgerald also reiterated a Buy rating on the stock with a $24.00 price target.