KeyBanc Downgrades Rocket Lab (RKLB) to Sector Weight, Future Upside Possible
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1d ago
0mins
Source: seekingalpha
- Rating Change: KeyBanc Capital Markets has downgraded Rocket Lab USA Inc. (RKLB) from 'overweight' to 'sector weight', indicating that while growth catalysts have been realized, the company remains one of the highest quality players in the space sector.
- Market Opportunities: KeyBanc noted that despite the downgrade, it could become more constructive on RKLB in the future if the company secures additional large contracts, clarifies potential long-term satellite constellations, and if government budgets increase.
- Industry Outlook: KeyBanc emphasized that RKLB operates in a high-growth and evolving sector, which presents potential opportunities for the company, underscoring its dominant position in the aerospace industry.
- Contract Potential: Although there is currently no price target, KeyBanc believes that securing more contracts in the future could enhance RKLB's market performance and investment appeal.
Analyst Views on RKLB
Wall Street analysts forecast RKLB stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for RKLB is 65.17 USD with a low forecast of 51.00 USD and a high forecast of 83.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
13 Analyst Rating
9 Buy
4 Hold
0 Sell
Moderate Buy
Current: 90.760
Low
51.00
Averages
65.17
High
83.00
Current: 90.760
Low
51.00
Averages
65.17
High
83.00
About RKLB
Rocket Lab Corporation is an end-to-end space company. The Company designs and manufactures small and medium-class rockets, spacecraft and spacecraft components, and related software and services to support the space economy. The Company delivers reliable launch services, satellite manufacture, spacecraft design services, spacecraft components, spacecraft manufacturing, and other spacecraft and on-orbit management solutions that make it easier to access space. Its Launch Services segment provides launch and launch-related services to customers on a dedicated mission or ride-share basis. Its Space Systems segment comprises the design and manufacture of spacecraft components and spacecraft program management services, space data applications, and mission operations. Its space systems solutions are the building blocks for spacecraft, which include composite structures, reaction wheels, star trackers, solar solutions, radios, separation systems, and command and control spacecraft software.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
