In a report released yesterday, Jason Gursky from Citi maintained a Hold rating on Rocket Lab USA (RKLB – Research Report), with a price target of $5.25.
Geoff Meacham has given his Hold rating due to a combination of factors that affect Rocket Lab USA’s investment profile. The analyst acknowledges the positive impact of a material agreement with the US Government to design, build, and operate 18 satellites, which brings in a substantial contract value of $515 million. While this contract signifies a strong endorsement of the company’s capabilities, especially in the realm of communications missions, it’s also important to note that the full benefits of this deal are yet to be fully detailed and publicly clarified.
Moreover, while the contract is expected to more than double the revenue for the company’s Space Systems, the rating reflects a careful consideration of both the opportunities and risks involved. The potential for share price appreciation is noted, with an expected return of 18.5%, yet the analyst maintains a Neutral stance, likely due to uncertainties regarding the execution of the new contract and the broader market conditions that could influence the company’s performance. Hence, the Hold rating suggests a balanced view, recognizing Rocket Lab USA’s significant achievement without overlooking the need for caution given the high-risk nature of the industry.
See the top stocks recommended by analysts >>
Based on the recent corporate insider activity of 24 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.
TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.
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.
Read More on RKLB:
