Rocket Lab USA Is Ready For Liftoff, Morgan Stanley Says - Rocket Lab USA (NASDAQ:RKLB)

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  • Morgan Stanley analyst Kristine T Liwag reiterated an Overweight rating on the shares of Rocket Lab USA Inc RKLB with a price target of $10.00.
  • Dedicated space companies have had a tough 2022, including Rocket Lab, said the analyst.
  • Space firms that listed in 2021 are down a median 66% YTD, compared to the S&P 500 down ~13%, as higher interest rates have effectively dimmed the outlook for over-the-horizon initiatives, the analyst added.
  • However, the analyst sees opportunity in the market’s indiscriminate treatment of Space companies and view Rocket Lab’s recent price performance (down ~66% YTD) presenting attractive risk / reward proposition.
  • The analyst said the company, an early space mover with real revenue, an increasingly visible growth profile and initiatives underway, could potentially upend traditional launch economics.
  • The analyst expects satellite manufacturers’ reduced risk appetite in the current economic environment, along with recent setbacks to global launch capacity, to provide tailwinds to the company.
  • The analyst views Rocket Lab as a small launch standout with exciting potential as Neutron’s development progresses and management makes headway toward long-term profitability goals while upholding its execution track record.
  • Also ReadRocket Lab Creates Defense-Focused Unit Catering To National Security
  • Price Action: RKLB shares are trading lower by 4.07% at $3.98 on the last check Tuesday.
  • Photo Via Company

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Image and article originally from www.benzinga.com. Read the original article here.