Rocket Lab's (RKLB) "Buy" Rating Reiterated at TD Cowen

Key Points

• TD Cowen reaffirmed its “Buy” rating on Rocket Lab and set a $90 price target, implying 68.94% potential upside from the referenced share price.
• Analyst sentiment is broadly positive, with the stock carrying a “Moderate Buy” consensus rating and an average price target of $104.05, despite some opposing neutral and sell ratings.
• Rocket Lab shares fell to $53.27, while the company continues to report losses and recently missed quarterly EPS estimates; insiders have also sold roughly $27 million of stock over the past three months.

Rocket Lab (NASDAQ:RKLB - Get Free Report)'s stock had its "buy" rating reaffirmed by research analysts at TD Cowen in a research report issued on Thursday, Benzinga reports. They currently have a $90.00 price target on the rocket manufacturer's stock. TD Cowen's price target suggests a potential upside of 68.94% from the stock's current price.

Several other equities analysts also recently commented on RKLB. Bank of America decreased their price target 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. Berenberg Bank assumed coverage on shares of Rocket Lab in a research note on Wednesday, September 2nd. They issued a "buy" rating and a $83.00 price target on the stock. Wall Street Zen downgraded shares of Rocket Lab from a "hold" rating to a "sell" rating in a research note on Saturday, August 15th. Craig Hallum upped their price target on shares of Rocket Lab from $98.00 to $120.00 and gave the company a "buy" rating in a research note on Monday, June 29th. Finally, Piper Sandler assumed coverage on shares of Rocket Lab in a research note on Wednesday, July 15th. They issued a "neutral" rating and a $83.00 price target on the stock. Four research analysts have rated the stock with a Strong Buy rating, fourteen have issued a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $104.05.

Rocket Lab Stock Performance

Shares of RKLB traded down $5.91 during trading hours on Thursday, hitting $53.27. The company had a trading volume of 21,980,655 shares, compared to its average volume of 22,953,984. The firm has a market cap of $31.88 billion, a price-to-earnings ratio of -197.23 and a beta of 2.93. The business has a fifty day moving average of $69.91 and a 200-day moving average of $84.33. Rocket Lab has a 12 month low of $37.57 and a 12 month high of $151.00. The company has a quick ratio of 4.98, a current ratio of 5.48 and a debt-to-equity ratio of 0.01.

Rocket Lab (NASDAQ:RKLB - Get Free Report) last issued its quarterly earnings data on Monday, August 10th. The rocket manufacturer reported ($0.08) earnings per share for the quarter, missing the consensus estimate of ($0.06) by ($0.02). The company had revenue of $234.07 million during the quarter, compared to the consensus estimate of $231.62 million. Rocket Lab had a negative net margin of 21.51% and a negative return on equity of 6.48%. Equities analysts anticipate that Rocket Lab will post -0.20 EPS for the current fiscal year.

Insider Activity

In other Rocket Lab news, SVP Arjun Kampani sold 6,034 shares of the stock in a transaction dated Thursday, August 27th. The shares were sold at an average price of $66.65, for a total transaction of $402,166.10. Following the sale, the senior vice president directly owned 250,917 shares in the company, valued at $16,723,618.05. This represents a 2.35% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Marvin Clevenger sold 15,051 shares of the stock in a transaction dated Monday, August 24th. The stock was sold at an average price of $69.63, for a total transaction of $1,048,001.13. Following the sale, the insider owned 458,924 shares in the company, valued at $31,954,878.12. The trade was a 3.18% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 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. Over the last three months, insiders sold 400,749 shares of company stock valued at $26,964,474. Company insiders own 8.40% of the company's stock.

Institutional Investors Weigh In On Rocket Lab

A number of large investors have recently bought and sold shares of the company. Versant Capital Management Inc grew its stake in Rocket Lab by 5.1% during the second quarter. Versant Capital Management Inc now owns 2,049 shares of the rocket manufacturer's stock worth $208,000 after buying an additional 100 shares in the last quarter. Bartlett & CO. Wealth Management LLC grew its stake in Rocket Lab by 7.1% during the first quarter. Bartlett & CO. Wealth Management LLC now owns 1,869 shares of the rocket manufacturer's stock worth $120,000 after buying an additional 124 shares in the last quarter. Sovereign Financial Group Inc. grew its stake in Rocket Lab by 3.9% during the first quarter. Sovereign Financial Group Inc. now owns 3,320 shares of the rocket manufacturer's stock worth $213,000 after buying an additional 125 shares in the last quarter. Parvin Asset Management LLC grew its stake in Rocket Lab by 4.0% during the first quarter. Parvin Asset Management LLC now owns 3,665 shares of the rocket manufacturer's stock worth $235,000 after buying an additional 140 shares in the last quarter. Finally, Wedmont Private Capital grew its stake in Rocket Lab by 3.5% during the third quarter. Wedmont Private Capital now owns 4,644 shares of the rocket manufacturer's stock worth $318,000 after buying an additional 157 shares in the last quarter. 71.78% of the stock is currently owned by institutional investors and hedge funds.

Key Stories Impacting Rocket Lab

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

• Positive Sentiment: Analyst upside remains substantial: Cantor Fitzgerald reaffirmed its “mixed” rating but set a $122 price target, well above the referenced $59.18 share price. Benzinga analyst coverage
• Positive Sentiment: Core business momentum continues: Rocket Lab reported second-quarter revenue of approximately $234.1 million, up nearly 62% year over year. Its Electron and HASTE programs, space systems operations, government work and reported backlog remain important supports while Neutron is developed. Rocket Lab Neutron update
• Neutral Sentiment: Neutron remains strategically important: The reusable medium-lift rocket is intended to expand Rocket Lab’s addressable launch market and compete with vehicles such as SpaceX’s Falcon 9, but the company has not provided a specific 2027 launch date. Reuters Neutron launch report
• Negative Sentiment: Manufacturing defects caused the delay: Rocket Lab identified issues with a carbon-composite forward propellant dome on Neutron’s first-stage vehicle. Management emphasized that a merely possible successful launch is not its standard, increasing investor focus on testing and quality-control risks. Stocktwits Neutron manufacturing report
• Negative Sentiment: Investor overhangs add to the selling pressure: Recent equity issuance to help fund the pending Iridium acquisition raises dilution concerns, while reported insider selling and weaker near-term gross-margin guidance may reinforce caution around valuation and financing needs. Quiver Quantitative Rocket Lab analysis

About Rocket Lab

Rocket Lab USA, Inc is a space and launch company that provides launch services, spacecraft, satellite components and other space systems for commercial, civil and national-security customers. The company designs and manufactures many of its products in-house, supporting missions from initial spacecraft development through launch and on-orbit operations.

Rocket Lab's primary launch vehicle is Electron, a small-lift rocket designed to place satellites into low Earth orbit. The company also operates the HASTE suborbital test platform for hypersonic and other advanced aerospace technologies and is developing Neutron, a larger reusable rocket intended to serve commercial and government missions.