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Investing.com - Stifel has raised its price target on Rocket Lab USA (NASDAQ:RKLB) to $55.00 from $34.00 while maintaining a Buy rating ahead of the company’s second-quarter earnings report. The stock has delivered remarkable returns, surging over 855% in the past year and 74% year-to-date, though InvestingPro analysis indicates the stock is currently trading above its Fair Value.
The space company is scheduled to release its quarterly results on Thursday, August 7, with Stifel expecting an in-line performance including sequential revenue growth of 10.1% and gross margin improvement of 187 basis points. According to InvestingPro data, the company maintains healthy liquidity with a current ratio of 2.08, though it’s currently operating at a loss with an EBITDA of -$173 million in the last twelve months. Get access to 13 more exclusive InvestingPro Tips and comprehensive financial analysis with an InvestingPro subscription.
Rocket Lab completed five launches during the quarter, bringing its year-to-date total to 10, and remains on track to achieve more than 20 launches in 2025, according to Stifel’s analysis. The company also benefited from higher selling prices and resumed growth in its space systems business.
Stifel believes Rocket Lab’s Neutron rocket remains on schedule for its inaugural test flight in late fourth quarter, with the upcoming launch pad opening at Wallops, Virginia serving as a positive milestone supporting this timeline.
The firm expects management to reiterate guidance for accelerated growth in the second half of 2025, driven by improved launch cadence and the space systems business benefiting from its Space Development Agency contract, which has recently entered full-scale production.
In other recent news, Rocket Lab USA announced its upcoming mission "The Harvest Goddess Thrives," scheduled to launch from New Zealand on August 5, 2025. This mission marks the company’s 69th Electron launch and will deploy the QPS-SAR-12 satellite for the Japanese Earth imaging firm, iQPS. Cantor Fitzgerald has reiterated its Overweight rating with a $35.00 price target on Rocket Lab stock, ahead of this mission. Meanwhile, Citi has significantly raised its price target on Rocket Lab to $50.00 from $33.00, maintaining a Buy rating due to progress in the Neutron rocket development and growth in satellite systems. Citi’s revised target reflects a new valuation methodology considering Rocket Lab’s potential revenue in 2029. Additionally, Craig-Hallum has initiated coverage on Rocket Lab with a Hold rating and a $51.00 price target, acknowledging the company’s achievements but expressing caution about the upcoming Neutron launch schedule. These developments highlight Rocket Lab’s ongoing advancements in space missions and its evolving financial outlook.
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