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On Friday, Cantor Fitzgerald analyst Andres Sheppard reaffirmed an Overweight rating with a price target of $24.00 on Rocket Lab USA (NASDAQ:RKLB) stock, which has surged over 330% in the past year. The stock currently trades at $19.83, with analyst targets ranging from $13.50 to $35.00. According to InvestingPro analysis, RKLB appears overvalued at current levels, despite showing strong revenue growth of 78% in the last twelve months. Sheppard’s endorsement comes as Rocket Lab continues its development of the Neutron rocket, a medium-lift launch vehicle designed for reusability, capable of carrying payloads up to 13,000kg on expendable missions.
Rocket Lab’s management recently shared updates during their fourth-quarter earnings call, indicating significant progress on the Neutron project. While the company maintains a moderate debt level and healthy liquidity with a current ratio of 2.04, InvestingPro data reveals the company is not yet profitable, with an EBITDA of -$156 million. The company is on schedule to complete a second test of its Archimedes engine within the first quarter of 2025. Additionally, the completion of a launch site is anticipated in the second quarter of 2025, with the inaugural launch of Neutron planned for the second half of the year.
The company has also unveiled its Neutron Landing Platform, named "Return on Investment," which is expected to be commercialized in 2026. Before the Neutron’s debut launch later this year, Rocket Lab is set to achieve several key milestones, including vehicle integration, the first and second stage static fires, and a wet dress rehearsal.
Moreover, on November 12, 2024, Rocket Lab signed a significant multi-launch agreement with a commercial satellite constellation operator. The company aims for a minimum of "up to 20 launches per engine" in the reusable aspect of the Neutron project. Looking ahead, management has outlined a target of 9 launches through 2027, with a single launch in 2025 (not projected to generate revenue), three launches in 2026, and five launches in 2027.
In other recent news, Rocket Lab USA, Inc. reported its fourth-quarter 2024 earnings, revealing a significant 121% increase in revenue year-over-year, reaching $132.4 million, surpassing analyst expectations of $129.61 million. However, the company missed its earnings per share (EPS) forecast, reporting an EPS of -$0.10 against the expected -$0.09. Despite the revenue growth, the stock faced a decline in aftermarket trading, reflecting investor concerns over profitability. The company has a backlog of $1.07 billion, which suggests strong future demand, supported by new contracts worth over $450 million signed in 2024. Rocket Lab plans to launch its Neutron rocket in the second half of 2025, aiming for over 20 launches in the year. Analyst firms like Deutsche Bank (ETR:DBKGn) and Cantor Fitzgerald have shown interest in the company’s strategic plans and developments. Rocket Lab’s full-year 2024 revenue reached $436 million, marking a 78% increase from the previous year, driven by both its launch services and space systems segments.
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