Rocket Lab (NASDAQ:RKLB) Stock Rating Upgraded by Craig Hallum

Key Points

• Craig Hallum upgraded Rocket Lab from "hold" to "buy" and set a $98 price target, implying roughly a 24.7% upside from the current share price.
• Strong operational momentum: Q1 revenue beat at $200.35M (up ~63% YoY), GAAP EPS in line, a record ~$2.2B backlog, major multi-launch deals, defense contract wins and an acquisition (Motiv) that increase forward revenue visibility.
• Significant risks persist: The company remains unprofitable with negative margins and expected negative EPS for the year, while Neutron development, rising R&D costs, and recent insider selling underscore execution and valuation concerns.

Rocket Lab (NASDAQ:RKLB - Get Free Report) was upgraded by analysts at Craig Hallum from a "hold" rating to a "buy" rating in a note issued to investors on Friday, Marketbeat Ratings reports. The firm currently has a $98.00 price target on the rocket manufacturer's stock. Craig Hallum's target price would indicate a potential upside of 24.71% from the stock's current price.

Several other equities analysts have also commented on the stock. Wells Fargo & Company started coverage on shares of Rocket Lab in a report on Wednesday, April 1st. They set an "equal weight" rating and a $60.00 target price on the stock. Roth Mkm upped their price target on shares of Rocket Lab from $90.00 to $100.00 and gave the company a "buy" rating in a research report on Friday, April 17th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Rocket Lab in a research note on Tuesday, April 21st. Cantor Fitzgerald reiterated an "overweight" rating and issued a $85.00 price objective on shares of Rocket Lab in a report on Friday, March 13th. Finally, Wall Street Zen upgraded Rocket Lab from a "sell" rating to a "hold" rating in a report on Sunday, February 8th. Two equities research analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating, four have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $86.92.

Rocket Lab Stock Performance

NASDAQ:RKLB opened at $78.58 on Friday. The company has a market capitalization of $44.74 billion, a price-to-earnings ratio of -212.37 and a beta of 2.30. The business has a 50 day moving average of $72.88 and a 200 day moving average of $68.50. The company has a debt-to-equity ratio of 0.10, a current ratio of 4.08 and a quick ratio of 3.61. Rocket Lab has a 1-year low of $20.23 and a 1-year high of $99.58.

Rocket Lab (NASDAQ:RKLB - Get Free Report) last issued its quarterly earnings results on Thursday, May 7th. The rocket manufacturer reported ($0.07) EPS for the quarter, meeting analysts' consensus estimates of ($0.07). The business had revenue of $200.35 million for the quarter, compared to analysts' expectations of $189.65 million. Rocket Lab had a negative net margin of 32.94% and a negative return on equity of 19.01%. The business's quarterly revenue was up 63.4% on a year-over-year basis. During the same period last year, the business earned ($0.12) earnings per share. On average, sell-side analysts predict that Rocket Lab will post -0.22 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Rocket Lab news, Director Merline Saintil sold 18,126 shares of the firm's stock in a transaction on Friday, March 6th. The shares were sold at an average price of $75.04, for a total value of $1,360,175.04. Following the sale, the director owned 261,903 shares of the company's stock, valued at $19,653,201.12. This trade represents a 6.47% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Frank Klein sold 36,768 shares of the business's stock in a transaction dated Wednesday, March 4th. The shares were sold at an average price of $71.95, for a total transaction of $2,645,457.60. Following the completion of the transaction, the insider owned 1,088,237 shares in the company, valued at $78,298,652.15. The trade was a 3.27% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 233,449 shares of company stock worth $16,487,233. 8.40% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Arizona State Retirement System raised its holdings in Rocket Lab by 13.6% in the 3rd quarter. Arizona State Retirement System now owns 127,794 shares of the rocket manufacturer's stock worth $6,123,000 after purchasing an additional 15,307 shares in the last quarter. Firsthand Capital Management Inc. lifted its position in shares of Rocket Lab by 40.0% in the 3rd quarter. Firsthand Capital Management Inc. now owns 70,000 shares of the rocket manufacturer's stock worth $3,354,000 after purchasing an additional 20,000 shares during the period. Swiss National Bank lifted its position in shares of Rocket Lab by 67.7% in the 3rd quarter. Swiss National Bank now owns 1,243,630 shares of the rocket manufacturer's stock worth $59,582,000 after purchasing an additional 501,830 shares during the period. Vanguard Group Inc. lifted its position in shares of Rocket Lab by 13.4% in the 4th quarter. Vanguard Group Inc. now owns 47,420,192 shares of the rocket manufacturer's stock worth $3,308,033,000 after purchasing an additional 5,610,469 shares during the period. Finally, State of New Jersey Common Pension Fund D boosted its stake in shares of Rocket Lab by 14.4% during the 3rd quarter. State of New Jersey Common Pension Fund D now owns 153,106 shares of the rocket manufacturer's stock valued at $7,335,000 after purchasing an additional 19,304 shares in the last quarter. Institutional investors own 71.78% of the company's stock.

Rocket Lab News Summary

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

• Positive Sentiment: Q1 results beat on revenue and guidance: Rocket Lab reported record Q1 revenue of ~$200.3M (up ~63% YoY), delivered GAAP EPS in line with estimates, and issued Q2 revenue guidance of $225M–$240M that topped analyst expectations — a core driver of the rally. Rocket Lab (RKLB) Stock Soars 7.5% on Blowout Q1 Results and Defense Wins
• Positive Sentiment: Record backlog and largest launch contract: Management disclosed a record ~$2.2B backlog and announced the largest multi-launch deal in company history (multiple Neutron and Electron missions for a confidential customer), underpinning forward revenue visibility. Rocket Lab Expands Launch Backlog And Robotics Capabilities With Motiv Deal
• Positive Sentiment: Defense wins accelerate revenue and strategic positioning: Rocket Lab won a $30M Anduril HASTE hypersonic-launch contract and was selected with Raytheon for a U.S. Space Force interceptor demo — these defense awards add higher-margin, recurring program potential. Rocket Lab Awarded $30 Million Contract for HASTE Hypersonic Rocket Launches for Anduril
• Positive Sentiment: Strategic acquisition to expand capabilities: Rocket Lab agreed to acquire Motiv Space Systems (robotics/motion control used in Mars rovers), bringing in-space robotics and precision mechanisms that support satellite manufacturing and planetary/defense programs. Rocket Lab To Acquire Robotics Leader Motiv Space Systems
• Neutral Sentiment: Profitability still elusive: GAAP loss (-$0.07) was in line with estimates and the company remains unprofitable on a net-margin basis; analysts expect negative EPS for the fiscal year, keeping long-term profitability a watchpoint. Rocket Lab Reports Q1 Loss, Beats Revenue Estimates
• Negative Sentiment: Execution and R&D risks remain (Neutron timeline & costs): Neutron development, rising R&D and integration risks, and a premium market valuation relative to current earnings make the stock sensitive to execution misses; some traders were cautious ahead of results. Rocket Lab Stock Falls Ahead Of Q1 Results

Rocket Lab Company Profile

Rocket Lab is an aerospace company that provides launch services, spacecraft, and space systems for commercial and government customers. The company's primary launch vehicle is Electron, a small-lift orbital rocket designed to deploy small satellites and rideshare payloads to low Earth orbit. Rocket Lab also develops and manufactures the Rutherford engine, noted for its electric-pump-fed design and additive-manufactured components, which powers Electron and supports the company's propulsion capabilities.

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