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On Monday, Cantor Fitzgerald reiterated its Overweight rating on Rocket Lab USA (NASDAQ:RKLB) with a steady price target of $24.00, well above the current trading price of $18.94. The firm’s analyst, Andres Sheppard, highlighted Rocket Lab’s recent affirmations regarding its Neutron Rocket development timeline. During a conference, Rocket Lab’s CFO Adam Spice confirmed the company’s plans to finish building and conduct the initial launch of the Neutron Rocket by the second half of 2025. According to InvestingPro data, analyst targets for the stock range from $14.35 to $33.00, reflecting mixed opinions about the company’s prospects.
The company has outlined several key milestones it must reach before Neutron can begin commercial flights. These include vehicle integration, static fires of the first and second stages, and a wet dress rehearsal. Rocket Lab has set an ambitious goal for its Neutron Rocket, aiming for "up to 20 launches per engine." The company’s aggressive expansion is reflected in its impressive revenue growth of 78.34% over the last twelve months, though InvestingPro analysis indicates the stock currently appears overvalued relative to its Fair Value.
Rocket Lab’s management has provided a launch forecast through 2027, which anticipates a single launch in 2025, with no revenue expected from this initial flight. The schedule then ramps up to three launches in 2026 and five launches in 2027. The completion of the Neutron Rocket by March 14, 2025, is expected to position Rocket Lab as a direct competitor to SpaceX’s Falcon-9 within the medium-large launch market segment. With a market capitalization of $8.59 billion and analysts forecasting 33% revenue growth, investors can access detailed financial analysis and growth projections through InvestingPro’s comprehensive research reports.
The Space Systems division, which has traditionally contributed approximately two-thirds of Rocket Lab’s total revenue, continues to show progress. At the same conference, Rocket Lab announced ongoing advancements on its approximately $515 million contract with the Space Development Agency (SDA). The nature of the contracts within the Space Systems segment allows for more predictable revenue streams, bolstering confidence in the company’s backlog, as per Sheppard’s commentary. The company maintains a healthy current ratio of 2.04, indicating strong ability to meet short-term obligations, though it operates with moderate debt levels.
In other recent news, Rocket Lab USA has announced the deployment of eight satellites for OroraTech’s wildfire detection and monitoring mission, marking its fifth launch of the year. The mission, set to launch from New Zealand, is part of Rocket Lab’s effort to provide rapid response capabilities for time-sensitive operations. Additionally, Rocket Lab is acquiring a majority stake in Mynaric (ETR:M0YNn) for $75 million, with plans to potentially use proceeds from a $500 million at-the-market equity offering to fund this acquisition. The deal includes an earn-out consideration based on Mynaric’s future revenue targets, aligning with Rocket Lab’s growth objectives in the aerospace sector.
JMP analysts have maintained a Market Perform rating on Rocket Lab following the Mynaric acquisition announcement. Meanwhile, KeyBanc Capital Markets reaffirmed its Overweight rating with a $28 price target, viewing the acquisition as a strategic move to enhance Rocket Lab’s Space Systems segment. Stifel analysts also reiterated a Buy rating, citing Rocket Lab’s progress on its Neutron rocket development, which is on track for a 2025 launch. The company’s advancements in launch services and space systems position it for growth, with analysts closely monitoring its backlog and launch cadence. These developments reflect Rocket Lab’s ongoing efforts to strengthen its presence in the space industry.
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