Ronald Epstein, an analyst from Bank of America Securities, maintained the Buy rating on Rocket Lab USA (RKLB – Research Report). The associated price target remains the same with $30.00.
Ronald Epstein has given his Buy rating due to a combination of factors, primarily focusing on Rocket Lab USA’s strategic positioning within the National Security Space Launch (NSSL) contract. The inclusion of Rocket Lab in the NSSL Phase 3 Lane 1, alongside major players like SpaceX and Blue Origin, highlights its growing significance in the national security space sector. This contract, with a potential value of $5.6 billion through 2029, provides Rocket Lab with substantial opportunities to expand its defense and government launch capabilities.
Furthermore, the upcoming Neutron launch vehicle test, which is crucial for Rocket Lab’s eligibility for future launch task orders, represents a pivotal moment for the company. A successful demonstration of the Neutron’s capabilities could unlock further opportunities under the NSSL program, enhancing Rocket Lab’s competitive edge. The strategic timing of these developments, coupled with the increasing prioritization of space for national security, supports Epstein’s optimistic outlook and the Buy rating.
In another report released today, Citi also maintained a Buy rating on the stock with a $33.00 price target.
Based on the recent corporate insider activity of 42 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of RKLB in relation to earlier this year.