Cantor Fitzgerald Has Lowered Expectations for Rocket Lab (NASDAQ:RKLB) Stock Price

Key Points

• Cantor Fitzgerald cut its Rocket Lab price target from $122 to $111 but maintained an “overweight” rating, implying 88.6% upside from the stock’s current price.
• Rocket Lab reported record quarterly revenue of $267.8 million, beating estimates, but its loss of $0.12 per share was wider than expected. Analysts’ average rating is “Moderate Buy,” with an average price target of $100.25.
• Neutron launch contracts and a growing backlog point to customer demand, but the rocket’s maiden launch has been delayed to 2027, raising concerns about development costs and near-term profitability.

Rocket Lab (NASDAQ:RKLB - Get Free Report) had its target price lowered by stock analysts at Cantor Fitzgerald from $122.00 to $111.00 in a research report issued to clients and investors on Tuesday, Benzinga reports. The firm currently has an "overweight" rating on the rocket manufacturer's stock. Cantor Fitzgerald's price objective indicates a potential upside of 88.58% from the stock's current price.

Other equities research analysts have also issued reports about the stock. KeyCorp reduced their target price on shares of Rocket Lab from $135.00 to $100.00 and set an "overweight" rating on the stock in a report on Thursday, October 15th. KGI Securities raised shares of Rocket Lab from a "neutral" rating to an "outperform" rating and set a $107.00 price target for the company in a research note on Monday, July 27th. Citizens Jmp cut their price target on shares of Rocket Lab from $130.00 to $90.00 and set a "market outperform" rating on the stock in a report on Friday, October 16th. TD Cowen reiterated a "buy" rating and set a $90.00 price target on shares of Rocket Lab in a report on Thursday, October 15th. Finally, Bank of America reduced their price objective on shares of Rocket Lab from $115.00 to $110.00 and set a "buy" rating on the stock in a research note on Monday, August 31st. Three investment analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $100.25.

Rocket Lab Stock Performance

Shares of RKLB stock opened at $58.86 on Tuesday. The firm has a market capitalization of $35.22 billion, a price-to-earnings ratio of -217.99 and a beta of 3.15. The company has a current ratio of 5.48, a quick ratio of 4.98 and a debt-to-equity ratio of 0.01. The business's 50-day moving average price is $62.45 and its 200-day moving average price is $78.80. Rocket Lab has a 12 month low of $37.57 and a 12 month high of $151.00.

Rocket Lab (NASDAQ:RKLB - Get Free Report) last released its quarterly earnings data on Monday, November 9th. The rocket manufacturer reported ($0.12) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.07) by ($0.05). The firm had revenue of $267.83 million during the quarter, compared to analyst estimates of $257.21 million. Rocket Lab had a negative net margin of 21.51% and a negative return on equity of 6.48%. Equities research analysts forecast that Rocket Lab will post -0.20 EPS for the current year.

Insider Buying and Selling at Rocket Lab

In other news, insider Frank Klein sold 35,558 shares of Rocket Lab stock in a transaction dated Thursday, August 27th. The stock was sold at an average price of $66.61, for a total value of $2,368,518.38. Following the completion of the transaction, the insider directly owned 925,737 shares of the company's stock, valued at approximately $61,663,341.57. This trade represents a 3.70% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Marvin Clevenger sold 15,051 shares of the business's stock in a transaction dated Monday, August 24th. The shares were sold at an average price of $69.63, for a total value of $1,048,001.13. Following the completion of the transaction, the insider directly owned 458,924 shares in the company, valued at $31,954,878.12. This represents a 3.18% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last ninety days, insiders have sold 551,832 shares of company stock valued at $34,940,037. 8.40% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Rocket Lab

Hedge funds have recently added to or reduced their stakes in the business. Versant Capital Management Inc raised its holdings in Rocket Lab by 5.1% during the 2nd quarter. Versant Capital Management Inc now owns 2,049 shares of the rocket manufacturer's stock valued at $208,000 after acquiring an additional 100 shares during the period. Bartlett & CO. Wealth Management LLC boosted its holdings in shares of Rocket Lab by 7.1% in the first quarter. Bartlett & CO. Wealth Management LLC now owns 1,869 shares of the rocket manufacturer's stock worth $120,000 after acquiring an additional 124 shares during the period. Parvin Asset Management LLC grew its position in shares of Rocket Lab by 4.0% in the first quarter. Parvin Asset Management LLC now owns 3,665 shares of the rocket manufacturer's stock valued at $235,000 after purchasing an additional 140 shares in the last quarter. Wedmont Private Capital grew its position in shares of Rocket Lab by 3.5% in the third quarter. Wedmont Private Capital now owns 4,644 shares of the rocket manufacturer's stock valued at $318,000 after purchasing an additional 157 shares in the last quarter. Finally, DMC Group LLC grew its position in shares of Rocket Lab by 5.0% in the second quarter. DMC Group LLC now owns 3,553 shares of the rocket manufacturer's stock valued at $361,000 after purchasing an additional 170 shares in the last quarter. 71.78% of the stock is currently owned by institutional investors.

Rocket Lab News Roundup

Here are the key news stories impacting Rocket Lab this week:

• Positive Sentiment: Revenue reached a record $267.8 million, up 72.7% year over year and above estimates. Rocket Lab also reported positive GAAP operating cash flow and a record backlog that grew 52% sequentially to about $3.57 billion. Management forecast record fourth-quarter revenue, with a midpoint of roughly $280 million, and gross-margin expansion. Rocket Lab Q3 financial results
• Positive Sentiment: Neutron secured more than $515 million in launch contracts during the quarter, bringing its backlog to 16 missions; the stated base launch price rose to $70 million. The deals point to customer demand ahead of the rocket’s debut. Neutron launch deals
• Neutral Sentiment: NASA selected Rocket Lab for lunar delivery work under its Commercial Lunar Payload Services program, alongside other providers. The awards offer potential future work, but the overall contract pool is shared among multiple companies. Rocket Lab selected for NASA lunar delivery contracts
• Negative Sentiment: The quarterly loss was wider than expected: GAAP loss per share was $0.12 versus the $0.07 loss analysts had forecast. Investors also focused on Neutron’s maiden launch being pushed to 2027 and the associated development costs, which may weigh on near-term profitability despite the strong sales outlook. Rocket Lab shares dip after earnings miss

About Rocket Lab

Rocket Lab is a space company that provides launch services and spacecraft and satellite systems for commercial, civil, and national security customers. Founded in 2006 by Peter Beck, the company operates internationally, with headquarters in Long Beach, California, and launch operations in New Zealand and the United States.

Its launch business centers on Electron, a small orbital rocket designed to carry satellites to space, and HASTE, a suborbital vehicle used for hypersonic test missions.

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