Cantor Fitzgerald maintains Rocket Lab stock with $24 target

On Wednesday, Cantor Fitzgerald analyst Andres Sheppard reaffirmed a positive stance on Rocket Lab USA (NASDAQ:RKLB), maintaining an Overweight rating and a $24.00 price target for the company's shares. According to InvestingPro data, analyst targets for RKLB range from $14.35 to $33.00, with the stock currently trading at $18.08. The company's market capitalization stands at $7.89 billion, reflecting significant investor interest in this space technology player. Following discussions with CEO Peter Beck and CFO Adam Spice at the Space Symposium, the analyst expressed continued confidence in Rocket Lab's market position and future prospects. The firm is also organizing a non-deal roadshow (NDR) with Rocket Lab's management in Europe this June, offering investors the opportunity to schedule one-on-one meetings.

Sheppard highlighted Rocket Lab's vertical integration, noting that over 70% of their supply chain is domestically sourced, which could be advantageous amid potential tariff impacts. The company's resilience in the growing space industry is further supported by its launch services and space systems capabilities, positioning it as a comprehensive end-to-end space company. InvestingPro data shows impressive revenue growth of 78.34% in the last twelve months, with analysts anticipating continued sales growth in the current year. The company maintains a healthy current ratio of 2.04, indicating strong short-term liquidity.

Rocket Lab's status was emphasized as the second most frequently launched rocket company in the U.S., only trailing behind SpaceX, and as the leader among public companies. The analyst suggested that the company could benefit from any negative sentiment towards SpaceX due to CEO Elon Musk's controversial political stances, as Rocket Lab's Neutron launch vehicle is expected to be comparable to SpaceX's Falcon 9.

Additionally, Sheppard pointed out that Rocket Lab's proprietary launchpads are a strategic asset, providing the company with flexibility in its launch windows. With more than 60 successful missions completed to date, including 16 in the year 2024 alone, the analyst believes Rocket Lab is well-equipped to leverage the expanding space economy through its launch services and space systems. Rocket Lab's proven track record, diverse and recurring customer base, and large total addressable market (TAM) were also cited as key factors underpinning the company's strong positioning in the industry. For investors seeking deeper insights, InvestingPro offers comprehensive analysis through its Pro Research Report, which includes detailed financial metrics, growth projections, and expert analysis of RKLB's market position among 1,400+ top US stocks.

In other recent news, Rocket Lab USA, Inc. has introduced a new line of customizable solar arrays named STARRAY, which are designed to meet the diverse power needs of satellites. This development was announced during the 40th Space Symposium in Colorado Springs. The solar arrays can be tailored for power requirements ranging from 100 watts to over 2,000 watts, utilizing Rocket Lab's high-efficiency, radiation-hardened solar cells. In addition, Rocket Lab has been selected to participate in the U.S. Space Force's National Security Space Launch (NSSL) program, a significant contract with a ceiling of $5.6 billion. This program positions Rocket Lab as one of five launch providers chosen for securing reliable domestic launches for critical security missions.

Cantor Fitzgerald has maintained an Overweight rating on Rocket Lab, with a price target of $24, citing the company's progress on the Neutron Rocket. The initial launch of the Neutron Rocket is planned for the second half of 2025. Stifel analysts have also reaffirmed their Buy rating and a $27 price target, viewing the NSSL program as a positive development for Rocket Lab's business prospects. Meanwhile, Citi analysts have reiterated their Buy rating with a $33 target, noting the company's unexpected early inclusion in the competitive process for National Security Space Launches. Rocket Lab's eligibility to compete for these task orders is linked to the successful launch of its Neutron vehicle, projected to occur in 2025.

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