Rocket Lab (NASDAQ:RKLB) Raised to Strong-Buy at Barclays

Key Points

• Barclays upgraded Rocket Lab to “strong buy,” adding to a largely bullish analyst outlook. MarketBeat reports a “Moderate Buy” consensus rating and an average price target of $104.71.
• Rocket Lab reported quarterly revenue of $234.07 million, slightly above expectations, but missed earnings estimates with a loss of $0.08 per share. Analysts expect the company to remain unprofitable this year.
• Insiders have sold about 400,749 shares worth $26.96 million over the past 90 days, including a sizable CFO sale under a prearranged trading plan; institutional investors nonetheless own 71.78% of the stock.

Rocket Lab (NASDAQ:RKLB - Get Free Report) was upgraded by equities research analysts at Barclays to a "strong-buy" rating in a research note issued to investors on Friday, Zacks reports.

Several other research firms have also commented on RKLB. Citigroup initiated coverage on Rocket Lab in a research report on Thursday, October 1st. They issued a "buy" rating and a $105.00 price objective on the stock. Citizens Jmp reaffirmed a "market outperform" rating and set a $130.00 target price on shares of Rocket Lab in a report on Tuesday, August 11th. Bank of America decreased their target price on shares of Rocket Lab from $115.00 to $110.00 and set a "buy" rating for the company in a research note on Monday, August 31st. Weiss Ratings reissued a "sell (d-)" rating on shares of Rocket Lab in a report on Friday, July 17th. Finally, Cantor Fitzgerald restated an "overweight" rating on shares of Rocket Lab in a research report on Monday, September 21st. Five investment analysts have rated the stock with a Strong Buy rating, fourteen have given a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $104.71.

Rocket Lab Price Performance

NASDAQ:RKLB opened at $68.21 on Friday. The firm's fifty day moving average is $70.52 and its two-hundred day moving average is $84.33. The firm has a market cap of $40.81 billion, a price-to-earnings ratio of -252.62 and a beta of 2.93. The company has a debt-to-equity ratio of 0.01, a quick ratio of 4.98 and a current ratio of 5.48. Rocket Lab has a one year low of $37.57 and a one year high of $151.00.

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

Insider Activity

In related news, CAO Agostino Ricupati sold 669 shares of Rocket Lab stock in a transaction on Monday, August 24th. The shares were sold at an average price of $69.63, for a total value of $46,582.47. Following the sale, the chief accounting officer owned 26,863 shares of the company's stock, valued at approximately $1,870,470.69. This trade represents a 2.43% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Adam Spice sold 140,157 shares of Rocket Lab stock in a transaction on Thursday, October 1st. The shares were sold at an average price of $70.82, for a total transaction of $9,925,918.74. Following the completion of the sale, the chief financial officer directly owned 1,155,967 shares in the company, valued at $81,865,582.94. This represents a 10.81% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 400,749 shares of company stock worth $26,964,474. Insiders own 8.40% of the company's stock.

Institutional Trading of Rocket Lab

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Reflection Asset Management purchased a new position in Rocket Lab in the 4th quarter valued at about $30,000. Meeder Asset Management Inc. acquired a new position in shares of Rocket Lab during the second quarter valued at approximately $30,000. Highland Investment Advisors LLC purchased a new position in shares of Rocket Lab in the second quarter valued at approximately $30,000. NBH Bank purchased a new position in shares of Rocket Lab in the second quarter valued at approximately $30,000. Finally, Cherry Tree Wealth Management LLC acquired a new stake in shares of Rocket Lab in the second quarter worth approximately $32,000. Hedge funds and other institutional investors own 71.78% of the company's stock.

Rocket Lab News Roundup

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

• Positive Sentiment: Barclays initiated coverage of Rocket Lab with an “overweight” rating and an $85 price target, providing a near-term catalyst and signaling confidence in the aerospace and defense sector. Rocket Lab Stock Eyes Rebound After Bullish Coverage
• Positive Sentiment: Investor attention remains focused on Rocket Lab’s Neutron medium-lift rocket. Supporters, including Cathie Wood’s ARK Invest, view the vehicle as potentially competitive with SpaceX’s Falcon 9 and believe demand from satellite operators could create a significant launch opportunity if development stays on schedule. ARK and Neutron Launch Opportunity
• Positive Sentiment: Reports of a potential NASA bulk purchase, along with Rocket Lab’s Iridium-related business and broader launch activity, are reinforcing the long-term growth narrative. Rocket Lab NASA Bulk Purchase Report
• Neutral Sentiment: Rocket Lab’s shares have fallen sharply from their 52-week high, leaving valuation-sensitive investors focused on whether Neutron can convert its large addressable market into actual launches and revenue. Analysts cited in recent coverage see substantial upside, but the forecast depends heavily on successful execution. Rocket Lab Wall Street Upside Forecast
• Negative Sentiment: SpaceX’s agreement securing nationwide low-band spectrum has pressured satellite and space stocks, including Rocket Lab, by raising concerns about competitive dynamics in direct-to-device connectivity and control of critical communications infrastructure. SpaceX Spectrum Deal Pressures Space Stocks
• Negative Sentiment: Recent coverage has highlighted dilution, missed earnings expectations, continuing losses, and skepticism that Rocket Lab can compete with SpaceX. Jim Cramer also favored SpaceX over Rocket Lab, adding to the pressure on sentiment. Jim Cramer Compares Rocket Lab and SpaceX

Rocket Lab Company Profile

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.

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