Rocket Lab USA (RKLB) has received a new Buy rating, initiated by Needham analyst, Ryan Koontz.
Ryan Koontz has given his Buy rating due to a combination of factors that highlight Rocket Lab USA’s potential in the competitive space industry. The company’s strong vertical integration sets it apart and positions it as a formidable competitor to SpaceX, the current market leader. Rocket Lab’s Space Systems division is experiencing robust growth, driven by increasing demand for government and commercial low Earth orbit (LEO) constellation launches.
The profits generated from Space Systems are being reinvested into the company’s Launch business, which has already demonstrated success with its Electron rocket. With over 60 successful launches, Electron has reached a mature stage, and the upcoming Neutron rocket is anticipated to enter the medium-lift launch market. Neutron’s expected reusability and successful commercial missions, starting in 2026, are projected to significantly enhance Rocket Lab’s revenue, earnings, and cash flow, further justifying the Buy rating.
In another report released on April 22, KeyBanc also maintained a Buy rating on the stock with a $28.00 price target.