Citi analyst Jason Gursky maintained a Buy rating on Rocket Lab USA (RKLB – Research Report) yesterday and set a price target of $5.45.
Jason Gursky has given his Buy rating due to a combination of factors related to Rocket Lab USA’s performance and operational updates. Despite a slight miss in the first quarter earnings compared to guidance levels, the long-term outlook for the company’s revenue, earnings, and cash flow growth remains positive. Gursky acknowledges the challenges in the space sector, noting that these are reflected in the rescheduling of some of the planned Electron launches and the delay in the first launch of the Neutron vehicle. However, he views these developments as common in the industry, pointing out that such complexities often yield valuable lessons for future operations.
Furthermore, Gursky highlights the company’s adequate liquidity, which is expected to support mergers and acquisitions aimed at vertical integration, and a robust pipeline that underpins future growth. Although estimates and the price target have been adjusted to account for the revised launch schedules, the strong year-over-year growth in revenues, the impressive backlog, and the improvements in gross margins and production efficiencies justify maintaining a Buy rating for Rocket Lab USA. The company’s guidance for the second quarter also signals continued growth, adding to the optimism of Gursky’s outlook for the stock.
Based on the recent corporate insider activity of 27 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of RKLB in relation to earlier this year.
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Rocket Lab USA (RKLB) Company Description:
Rocket Lab (NASDAQ:RKLB) is a space company offering launch services, spacecraft manufacturing, and other solutions, including the management of satellites. Furthermore, its space systems business manufactures spacecraft components.
