Rocket Lab USA (RKLB – Research Report), the Technology sector company, was revisited by a Wall Street analyst today. Analyst Ronald Epstein from Bank of America Securities remains neutral on the stock and has a $14.00 price target.
Ronald Epstein’s Buy rating on Rocket Lab USA (RKLB) is influenced by a number of factors. Despite the company’s recent failed launch, Epstein maintains confidence in RKLB’s capabilities and overall potential in the space industry. This failure, the first in two years, occurred at ignition of the second stage’s Rutherford engine, leading to loss of payload. The specifics of the failure are currently being investigated by the Federal Aviation Administration (FAA).
Despite the setback, Epstein believes that RKLB’s revenue will not be significantly impacted as the company is paid for launch attempts, not their success. Additionally, he notes that Rocket Lab is expected to continue its Electron production while awaiting the FAA investigation’s completion. Although the company warned that the incident could result in delayed launches and a potential negative cash impact, Epstein still sees RKLB as a best-in-class space company. His Buy rating thus stems from his confidence in the company’s potential for recovery and its standing in the market.
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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.
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