Rocket Lab USA: Strong Performance Amidst Neutron Delay and Financial Uncertainties

BTIG analyst Andre Madrid has maintained their neutral stance on RKLB stock, giving a Hold rating on November 7.

Andre Madrid has given his Hold rating due to a combination of factors impacting Rocket Lab USA’s current and future performance. The company reported record sales and gross profit for the quarter, exceeding both BTIG’s and consensus estimates, which indicates strong operational performance. However, the delay of the Neutron launch vehicle into 2026 presents uncertainty, as it is crucial for bidding on significant contracts like the Space Force’s National Security Space Launch program.
Additionally, while Rocket Lab secured numerous launch contracts and completed strategic acquisitions, the financial outlook for the next quarter suggests a higher-than-expected EBITDA loss, likely due to increased operating expenses from the Neutron delay. The company’s liquidity position remains strong, but potential impacts from a government shutdown and additional development costs for Neutron add to the cautious outlook. These mixed signals contribute to the Hold rating, reflecting both the company’s achievements and the uncertainties it faces.

In another report released on November 7, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $48.00 price target.