Rocket Lab initiated with a Market Perform at JMP Securities

JMP Securities analyst Trevor Walsh initiated coverage of Rocket Lab with a Market Perform rating and no price target. Rocket Lab is an end-to-end space company that designs and manufactures small- and medium-class rockets and specialized spacecraft, the analyst tells investors in a research note. The firm is on the sidelines due to potential near-term risks and challenges placing pressure on the stock, but thinks there are “several strong, fundamental aspects” to Rocket Lab that could eventually lead it to be more positive on the name. The challenges include cost of launch concerns, growing competition and remaining uncertainty specific to Neutron, financial “vulnerabilities” and the competitive threat posed by SpaceX, contends JMP.