Stifel trims Rocket Lab price target, sees pullback creating better entry point

Stifel lowered the firm’s price target on Rocket Lab (RKLB) to $27 from $31 and keeps a Buy rating on the shares. The firm says a “solid” Q4 was overshadowed by softer Q1 guidance and the “slight” push out of the Neutron timeline to the second half of 2025. However, the firm believes any pullback “creates a better entry point for investors” as growth will resume in Q2 and accelerate in the second half of the year. The introduction of a low-cost, mass-producible satellite for large constellations “could be a game changer in the industry” and the firm still sees Neutron as “a key catalyst” that will open up a much larger total addressable market, the analyst added.