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LONG BEACH, Calif. - Rocket Lab USA, Inc. (NASDAQ:RKLB), a provider of launch services and space systems valued at $14.1 billion, has announced the delivery of its third Pioneer spacecraft to Varda Space Industries for the upcoming W-3 mission. The company, whose stock has surged nearly 500% over the past year according to InvestingPro data, transported the spacecraft to Vandenberg Space Force Base for its scheduled launch in March.
This recent delivery marks the second spacecraft Rocket Lab has provided to Varda within a month, following the successful launch and operation of Varda’s W-2 spacecraft. The W-2, which is currently in orbit, carries payloads from the Air Force Research Laboratory and NASA’s Ames Research Center, and is designed to enhance pharmaceutical processing capabilities in microgravity before its planned re-entry and recovery in South Australia.
The Pioneer spacecraft, Rocket Lab’s vertically integrated product, includes subsystems such as propulsion, avionics, and solar panels, and will support Varda’s 120kg manufacturing capsule. This capsule will exploit the microgravity environment of space to develop products that are challenging or impossible to manufacture on Earth.
Once production in orbit is completed, Rocket Lab and Varda will manage the capsule’s re-entry and recovery operations at the Koonibba Test Range in Australia, operated by Southern Launch.
Rocket Lab’s CEO, Sir Peter Beck, emphasized the company’s proficiency in handling multiple complex missions simultaneously, showcasing the team’s skill and the robustness of their integrated spacecraft technologies. The company’s operational capabilities are supported by strong revenue growth of 54% in the last twelve months, as reported by InvestingPro. Wendy Shimata, Vice President of Autonomous Systems at Varda, expressed the company’s intent to increase the frequency of manufacturing, launching, and re-entering missions to establish a regular exchange of space-made products with Earth.
The fourth and final spacecraft for Varda is in the final stages of assembly at Rocket Lab’s Spacecraft Production Complex in Long Beach, California. For investors seeking deeper insights into Rocket Lab’s financial health and growth prospects, InvestingPro offers comprehensive analysis including 12 additional ProTips and detailed valuation metrics in its Pro Research Report, part of its coverage of over 1,400 US equities.
The collaboration between Rocket Lab and Varda aims to lay the groundwork for a robust orbital economy, leveraging the unique conditions of space to innovate in manufacturing processes. This news is based on a press release statement.
In other recent news, Rocket Lab has been the subject of several analyst upgrades and contract acquisitions. KeyBanc Capital Markets raised their price target for the aerospace company to $32, citing recent achievements and increased sector support from the U.S. administration. Meanwhile, Citi analysts have also increased their price target for Rocket Lab to $35, reflecting confidence in the company’s growth trajectory following recent contract awards for the Neutron launch vehicle.
Stifel analysts have followed suit, raising their price target on Rocket Lab shares to $31, following the company’s announcement of its selection as part of a team led by Kratos Defense (NASDAQ:KTOS) & Security, which secured a five-year contract under the MACH-TB 2.0 program. This contract, valued at $1.45 billion, will cover various services including systems engineering, assembly, integration, and test, mission planning and execution, and launch services.
Rocket Lab has also been involved in significant operational advancements. The company reported a successful hot fire test of its Archimedes engine, a significant increase in testing cadence and engine efficiency, and a successful test of the Neutron rocket’s second stage tank. Additionally, Rocket Lab has been expanding its infrastructure and business operations, as evidenced by the ongoing build-out of the Neutron launch pad and the securing of Neutron launch contracts.
In a partnership development, BlackSky Technology Inc. has dispatched its inaugural Gen-3 satellite to launch service provider Rocket Lab. This satellite, scheduled for a February launch, marks a significant step in BlackSky’s space-based intelligence capabilities. The Gen-3 constellation is expected to provide customers with enhanced mission-critical insights, featuring rapid-revisit, very high-resolution imagery, and AI-enabled analytics.
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