Rocket Lab price target lowered to $10 from $12 at BofA

BofA lowered the firm’s price target on Rocket Lab to $10 from $12 and keeps a Buy rating on the shares. The firm states that it retains its view of the stock as the strongest pure-play space name within its coverage despite the recent Electron anomaly as the Space Systems business continues to perform strongly with the ramp up of the $143M MDA Globalstar contract, for which first delivery is slated to occur in Q1 of 2024. BofA further notes that demand for the Launch platform remains robust, with 2024 completely booked and coming in above the prior BofA estimates on Electron launches. The firm adds however that it is reassessing its discount rate post-mission failure to reflect Rocket Lab’s risk profile more accurately, raising its discount rate to 14.5% vs. prior 13.5%.