Rocket Lab (NASDAQ:RKLB) Upgraded to Strong-Buy at Citigroup

Citigroup upgraded shares of Rocket Lab (NASDAQ:RKLB) to a strong-buy rating in a research report report published on Thursday,Zacks reports.

Several other research analysts have also issued reports on RKLB. Bank of America cut their target price on shares of Rocket Lab from $115.00 to $110.00 and set a “buy” rating on the stock in a research note on Monday, August 31st. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Rocket Lab in a research note on Friday, July 17th. Raymond James Financial started coverage on shares of Rocket Lab in a report on Friday, September 11th. They set an “outperform” rating and a $80.00 price objective on the stock. Berenberg Bank initiated coverage on shares of Rocket Lab in a research report on Wednesday, September 2nd. They set a “buy” rating and a $83.00 price objective on the stock. Finally, KeyCorp restated an “overweight” rating on shares of Rocket Lab in a research note on Tuesday, August 11th. Five research analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $107.20.

Rocket Lab Trading Up 4.9%

Shares of RKLB stock opened at $73.92 on Thursday. The company has a market cap of $44.23 billion, a P/E ratio of -273.77 and a beta of 2.93. The stock has a 50 day simple moving average of $69.77 and a two-hundred day simple moving average of $84.34. The company has a debt-to-equity ratio of 0.01, a quick ratio of 4.98 and a current ratio of 5.48. Rocket Lab has a fifty-two week low of $37.57 and a fifty-two week high of $151.00.

Rocket Lab (NASDAQ:RKLB) last posted its quarterly earnings results on Monday, August 10th. The rocket manufacturer reported ($0.08) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.06) by ($0.02). The business had revenue of $234.07 million for the quarter, compared to the consensus estimate of $231.62 million. Rocket Lab had a negative return on equity of 6.48% and a negative net margin of 21.51%. Research analysts forecast that Rocket Lab will post -0.2 earnings per share for the current year.

Insiders Place Their Bets

In other Rocket Lab news, CFO Adam C. Spice sold 140,157 shares of the company’s stock in a transaction on Thursday, October 1st. The shares were sold at an average price of $70.82, for a total transaction of $9,925,918.74. Following the transaction, the chief financial officer owned 1,155,967 shares in the company, valued at approximately $81,865,582.94. This represents a 10.81% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Frank Klein sold 35,558 shares of the company’s stock in a transaction on Thursday, August 27th. The stock was sold at an average price of $66.61, for a total transaction of $2,368,518.38. Following the transaction, the insider owned 925,737 shares in the company, valued at approximately $61,663,341.57. The trade was a 3.70% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 3,676,528 shares of company stock worth $313,368,560 in the last quarter. Insiders own 8.40% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the business. BlackRock Inc. purchased a new stake in Rocket Lab in the 2nd quarter worth about $4,124,970,000. Capital World Investors lifted its holdings in Rocket Lab by 12.0% during the fourth quarter. Capital World Investors now owns 16,200,726 shares of the rocket manufacturer’s stock valued at $1,130,172,000 after purchasing an additional 1,738,623 shares during the last quarter. Bank of New York Mellon Corp purchased a new stake in Rocket Lab during the second quarter valued at about $245,764,000. Bank of America Corp DE purchased a new stake in Rocket Lab during the second quarter valued at about $437,280,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its position in Rocket Lab by 14.8% during the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 2,737,451 shares of the rocket manufacturer’s stock worth $278,262,000 after purchasing an additional 352,094 shares during the period. 71.78% of the stock is currently owned by institutional investors and hedge funds.

Trending Headlines about Rocket Lab

Here are the key news stories impacting Rocket Lab this week:

• Positive Sentiment: Record Synspective contract: Rocket Lab signed a multi-year agreement for 20 Electron launches between 2028 and 2031. The deal lifts Synspective’s total planned missions to 47 and pushes Rocket Lab’s launch backlog above 100 missions, strengthening visibility for future launch revenue. Rocket Lab’s 20-Launch Synspective Deal Pushes Backlog Above 100 Missions
• Positive Sentiment: Wall Street support: Citi initiated coverage with a Buy rating and a $105 price target, calling RKLB a potential “core holding for space bulls.” Other analysts cited in recent coverage see substantial upside, supporting the stock’s rebound. Rocket Lab Stock Rises on Record Electron Launch Deal and Citi Buy Rating
• Positive Sentiment: Institutional buying: Cathie Wood’s ARK Invest ETFs reportedly purchased more than $41 million of Rocket Lab shares across ARKK, ARKQ and ARKX. The buying reflects confidence in Electron, the company’s space-systems business and its planned Neutron rocket. Cathie Wood Is Buying Rocket Lab Again
• Neutral Sentiment: Competitive backdrop: SpaceX’s successful Starship orbital test highlights both the opportunity and the threat for Rocket Lab. Larger, potentially lower-cost rockets could pressure launch economics, increasing the importance of Rocket Lab’s differentiated, dedicated-launch strategy and Neutron’s development.
• Negative Sentiment: Risks remain: The Synspective contract’s financial terms were not disclosed, Rocket Lab remains unprofitable, and its latest reported quarter missed the consensus EPS estimate despite exceeding revenue expectations. Extensive insider selling—including sales by CEO Peter Beck—may also weigh on sentiment and raises valuation concerns after the recent rally.

About Rocket Lab

Rocket Lab USA, Inc is a space and launch company that provides launch services, spacecraft, satellite components and other space systems for commercial, civil and national-security customers. The company designs and manufactures many of its products in-house, supporting missions from initial spacecraft development through launch and on-orbit operations.

Rocket Lab’s primary launch vehicle is Electron, a small-lift rocket designed to place satellites into low Earth orbit. The company also operates the HASTE suborbital test platform for hypersonic and other advanced aerospace technologies and is developing Neutron, a larger reusable rocket intended to serve commercial and government missions.