Rocket Lab downgraded to Equal Weight from Overweight at Morgan Stanley

Morgan Stanley analyst Kristine Liwag downgraded Rocket Lab to Equal Weight from Overweight with a price target of $6, down from $8. The analyst cites a more limited catalyst path and slowing Department of Defense space spend for the downgrade. With a tapering Defense Department budget for space-based systems and as investors focus in on profitability, Morgan Stanley tempered its outlook for space pure-plays, the analyst tells investors in a research note. While bullish on Rocket Lab’s longer-term potential in the “burgeoning” space market, the firm says it rarely sees new rocket development timelines accelerated and thus sees a more limited near-term catalyst path ahead for the company.