Needham & Company LLC Reaffirms Buy Rating for Rocket Lab (NASDAQ:RKLB)

Key Points

• Needham & Company LLC has reaffirmed a buy rating for Rocket Lab (NASDAQ:RKLB) with a price target of $55.00, indicating an 11.54% potential upside from the current price.
• Recent reports from multiple investment firms have raised Rocket Lab's target prices, with estimates ranging from $40.00 to $55.00, showing increasing investor confidence in the rocket manufacturer.
• Rocket Lab reported a revenue increase of 35.9% year-over-year, despite missing earnings per share estimates in its last earnings report.

Rocket Lab (NASDAQ:RKLB - Get Free Report)'s stock had its "buy" rating reiterated by equities researchers at Needham & Company LLC in a note issued to investors on Wednesday,Benzinga reports. They currently have a $55.00 price target on the rocket manufacturer's stock. Needham & Company LLC's target price indicates a potential upside of 11.54% from the stock's current price.

RKLB has been the subject of a number of other reports. KeyCorp raised their price objective on Rocket Lab from $40.00 to $50.00 and gave the stock an "overweight" rating in a research report on Friday, August 8th. Roth Capital reiterated a "buy" rating on shares of Rocket Lab in a report on Friday. Citigroup reissued a "buy" rating and set a $50.00 target price (up previously from $33.00) on shares of Rocket Lab in a research report on Monday, July 14th. Bank of America upped their price target on Rocket Lab from $30.00 to $50.00 and gave the company a "buy" rating in a report on Wednesday, July 16th. Finally, Stifel Nicolaus increased their price target on shares of Rocket Lab from $34.00 to $55.00 and gave the company a "buy" rating in a research note on Tuesday, August 5th. One investment analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and five have issued a Hold rating to the company's stock. According to MarketBeat, Rocket Lab presently has a consensus rating of "Moderate Buy" and an average price target of $42.27.

Rocket Lab Price Performance

Rocket Lab stock opened at $49.31 on Wednesday. Rocket Lab has a 52-week low of $5.74 and a 52-week high of $53.44. The firm has a market capitalization of $23.64 billion, a price-to-earnings ratio of -109.58 and a beta of 2.17. The company has a quick ratio of 2.33, a current ratio of 2.67 and a debt-to-equity ratio of 0.60. The company has a fifty day simple moving average of $43.36 and a 200-day simple moving average of $29.76.

Rocket Lab (NASDAQ:RKLB - Get Free Report) last released its earnings results on Thursday, August 7th. The rocket manufacturer reported ($0.13) earnings per share for the quarter, missing analysts' consensus estimates of ($0.07) by ($0.06). The business had revenue of $144.50 million during the quarter, compared to analysts' expectations of $135.42 million. Rocket Lab had a negative return on equity of 48.14% and a negative net margin of 45.87%.The company's revenue for the quarter was up 35.9% compared to the same quarter last year. During the same period last year, the business earned ($0.08) earnings per share. Rocket Lab has set its Q3 2025 guidance at EPS. On average, equities analysts anticipate that Rocket Lab will post -0.38 EPS for the current fiscal year.

Insider Buying and Selling at Rocket Lab

In other Rocket Lab news, insider Arjun Kampani sold 5,194 shares of Rocket Lab stock in a transaction that occurred on Monday, June 9th. The stock was sold at an average price of $30.00, for a total value of $155,820.00. Following the transaction, the insider directly owned 530,230 shares in the company, valued at approximately $15,906,900. This trade represents a 0.97% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Merline Saintil sold 6,353 shares of the business's stock in a transaction that occurred on Tuesday, June 24th. The shares were sold at an average price of $33.38, for a total value of $212,063.14. Following the completion of the transaction, the director directly owned 419,569 shares in the company, valued at approximately $14,005,213.22. The trade was a 1.49% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 1,040,446 shares of company stock worth $27,247,305 over the last three months. 11.90% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Rocket Lab

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Versant Capital Management Inc raised its position in Rocket Lab by 118.1% during the 1st quarter. Versant Capital Management Inc now owns 1,588 shares of the rocket manufacturer's stock worth $28,000 after buying an additional 860 shares during the last quarter. EverSource Wealth Advisors LLC raised its holdings in Rocket Lab by 109.5% during the second quarter. EverSource Wealth Advisors LLC now owns 796 shares of the rocket manufacturer's stock worth $28,000 after purchasing an additional 416 shares in the last quarter. MassMutual Private Wealth & Trust FSB purchased a new position in Rocket Lab during the first quarter worth about $29,000. Farther Finance Advisors LLC lifted its position in Rocket Lab by 181.1% in the first quarter. Farther Finance Advisors LLC now owns 1,903 shares of the rocket manufacturer's stock valued at $35,000 after purchasing an additional 1,226 shares during the period. Finally, Spectrum Wealth Counsel LLC boosted its holdings in Rocket Lab by 100.0% in the 1st quarter. Spectrum Wealth Counsel LLC now owns 2,000 shares of the rocket manufacturer's stock valued at $36,000 after purchasing an additional 1,000 shares in the last quarter. 71.78% of the stock is currently owned by hedge funds and other institutional investors.

About Rocket Lab

Rocket Lab USA, Inc, a space company, provides launch services and space systems solutions for the space and defense industries. The company provides launch services, spacecraft design services, spacecraft components, spacecraft manufacturing, and other spacecraft and on-orbit management solutions; and constellation management services, as well as designs and manufactures small and medium-class rockets.

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