Rocket Lab (NASDAQ:RKLB) Stock Rating Reaffirmed as "Overweight" by KeyCorp

Key Points

• KeyCorp reaffirmed its Overweight rating on Rocket Lab and maintained a $100 price target, implying about 69.9% upside from the prior close. Analysts’ consensus rating is “Moderate Buy,” with a $100.25 average target.
• Rocket Lab reported quarterly revenue of $267.8 million, above expectations, but its $0.12-per-share loss was wider than analysts’ forecast of $0.07. Its backlog grew to about $3.57 billion, and Neutron secured more than $515 million in launch contracts.
• Neutron’s first launch has been pushed to 2027, raising concerns about development costs and near-term profitability despite the company’s strong revenue outlook.

Rocket Lab (NASDAQ:RKLB - Get Free Report)'s stock had its "overweight" rating reissued by equities researchers at KeyCorp in a research report issued on Tuesday, Benzinga reports. They presently have a $100.00 target price on the rocket manufacturer's stock. KeyCorp's price objective points to a potential upside of 69.89% from the company's previous close.

Several other research firms also recently weighed in on RKLB. Bank of America decreased their target price on Rocket Lab from $115.00 to $110.00 and set a "buy" rating for the company in a research report on Monday, August 31st. TD Cowen restated a "buy" rating and issued a $90.00 price target on shares of Rocket Lab in a report on Thursday, October 15th. Needham & Company LLC reaffirmed a "buy" rating and issued a $120.00 price target on shares of Rocket Lab in a research note on Friday, October 16th. KGI Securities raised shares of Rocket Lab from a "neutral" rating to an "outperform" rating and set a $107.00 price target on the stock in a research note on Monday, July 27th. Finally, Berenberg Bank started coverage on shares of Rocket Lab in a report on Wednesday, September 2nd. They set a "buy" rating and a $83.00 price objective for the company. Three investment analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $100.25.

Rocket Lab Trading Up 10.9%

Shares of NASDAQ RKLB opened at $58.86 on Tuesday. The company has a debt-to-equity ratio of 0.01, a quick ratio of 4.98 and a current ratio of 5.48. 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 fifty-two week low of $37.57 and a fifty-two week high of $151.00. The company has a market cap of $35.22 billion, a price-to-earnings ratio of -217.99 and a beta of 3.15.

Rocket Lab (NASDAQ:RKLB - Get Free Report) last posted its quarterly earnings data on Monday, November 9th. The rocket manufacturer reported ($0.12) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.07) by ($0.05). Rocket Lab had a negative net margin of 21.51% and a negative return on equity of 6.48%. The business had revenue of $267.83 million for the quarter, compared to analysts' expectations of $257.21 million. On average, sell-side analysts expect that Rocket Lab will post -0.20 earnings per share for the current year.

Insider Buying and Selling at Rocket Lab

In other Rocket Lab news, Director Nina Armagno sold 10,926 shares of the company's stock in a transaction on Monday, November 2nd. The stock was sold at an average price of $52.78, for a total value of $576,674.28. Following the completion of the sale, the director directly owned 100,496 shares in the company, valued at approximately $5,304,178.88. This represents a 9.81% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Arjun Kampani sold 6,034 shares of the stock in a transaction on Thursday, August 27th. The stock was sold at an average price of $66.65, for a total value of $402,166.10. Following the transaction, the senior vice president directly owned 250,917 shares in the company, valued at $16,723,618.05. The trade was a 2.35% decrease in their position. 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. Insiders sold a total of 551,832 shares of company stock worth $34,940,037 over the last quarter. Insiders own 8.40% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in RKLB. Highland Investment Advisors LLC bought a new stake in shares of Rocket Lab in the 2nd quarter valued at about $30,000. Meeder Asset Management Inc. bought a new position in shares of Rocket Lab during the second quarter valued at approximately $30,000. NBH Bank bought a new position in shares of Rocket Lab during the second quarter valued at approximately $30,000. Cherry Tree Wealth Management LLC bought a new position in shares of Rocket Lab during the second quarter valued at approximately $32,000. Finally, Hilton Head Capital Partners LLC increased its holdings in Rocket Lab by 3,590.0% during the third quarter. Hilton Head Capital Partners LLC now owns 369 shares of the rocket manufacturer's stock valued at $26,000 after buying an additional 359 shares during the period. Hedge funds and other institutional investors own 71.78% of the company's stock.

More Rocket Lab News

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

Rocket Lab Company Profile

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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