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Rocket Lab USARKLBRISKYMay 16, 2025Stock price when the opinion was issued
As of Oct 16, 2026. Market Open.
Launch capacity should become very constrained in next 2-3 years, even for broadband. If data centre use can materialize, pretty significant upside. Its new rocket, Neutron, will be much more competitive on price. Looking for cost/kg to go from $3k to $300, and we're already heading in that direction. No dividend.
(Analysts’ price target is $88.08)RKLB had a decent quarter, is getting some stock mojo back after its prior weak quarter (and short attack) and has signed some decent new contracts. It is still an 'expensive' stock in a still-uncertain environment. Cash flow remains highly negative and losses are expected to continue for at least two years. We like the company...less so the valuation. We would be OK with a starter position (1/4 size, perhaps) for very aggressive investors.
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Skeptical because it's a company losing money, but many companies want to launch rockets, so there's demand.