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Cantor Fitzgerald maintains $24 target on Rocket Lab stock

Published 2025-05-05, 08:28 a/m
Cantor Fitzgerald maintains $24 target on Rocket Lab stock

Cantor Fitzgerald maintains $24 target on Rocket Lab stock

Monday, Cantor Fitzgerald reiterated its Overweight rating on Rocket Lab USA (NASDAQ:RKLB) with a maintained price target of $24.00. The space technology company, currently valued at $10.43 billion, has seen its stock surge an impressive 474.75% over the past year, though it’s down 9.74% year-to-date. According to InvestingPro analysis, the stock is currently trading above its Fair Value, with 13 key investment insights available to subscribers. Analyst Andres Sheppard anticipates Rocket Lab will reveal its first quarter earnings for 2025 after the market closes on Friday, May 8, followed by an earnings call at 5:00 PM ET the same day. The sellside consensus for the quarter is a revenue expectation of $121.7 million with a GAAP gross margin around 26%, in line with the company’s trailing twelve-month gross margin of 26.63%. InvestingPro data shows analysts expect revenue growth of 33% for fiscal year 2025.

Sheppard predicts the earnings call will shed light on Rocket Lab’s progress with its Neutron rocket, aiming for a launch in the second half of 2025. The company has set goals for Neutron’s reusability, aiming for "up to 20 launches per engine." Rocket Lab has outlined a launch plan leading up to 2027, with one launch in 2025, three in 2026, and five in 2027, though no revenue is expected from the singular 2025 launch.

Key milestones for Neutron’s 2025 launch include vehicle integration, stage 1 and 2 static fires, and a wet dress rehearsal. Further details are also anticipated on the recently announced HASTE contract, valued at approximately $1.45 billion. Rocket Lab’s successful completion of 16 Electron and Haste launches in 2024, marking a 60% year-over-year increase in launch cadence, supports the analyst’s projection of 22 launches for 2025.

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Updates are also expected on Rocket Lab’s Space Systems sector, including the new Flatellite product and the delivery and operation of 18 space vehicles for the Space Development Agency, a contract worth around $515 million. Deliveries are scheduled for completion by 2027, with revenue recognition expected to be roughly 40% in both 2025 and 2026, and the remainder in 2027.

The company reported a contracted backlog of approximately $1.07 billion as of the fourth quarter of 2024, with management planning to recognize about 50% of this backlog within the next 12 months. With a healthy current ratio of 2.04 and last twelve-month revenue of $436.21 million, Rocket Lab maintains a strong financial position. Sheppard’s commentary reflects a positive outlook on Rocket Lab’s potential to leverage its position in the expanding space economy through its launch services and comprehensive space systems offerings. For detailed financial analysis and exclusive insights, including a comprehensive Pro Research Report covering what really matters about Rocket Lab, visit InvestingPro.

In other recent news, Rocket Lab USA has been actively involved in several significant developments. The company has announced its participation in multi-billion dollar defense contracts with both the U.S. Air Force and the UK Ministry of Defence, focusing on hypersonic technology. These contracts, which include the $46 billion Enterprise-Wide Agile Acquisition Contract (EWAAC) and the $1.3 billion Hypersonic Technologies & Capability Development Framework (HTCDF), are expected to run through 2031. Rocket Lab’s HASTE rocket, a suborbital variant of the Electron rocket, will play a crucial role in these programs, showcasing its rapid launch capabilities and larger payload capacity.

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Additionally, analysts from Needham have initiated coverage of Rocket Lab with a Buy rating and a $28 price target, recognizing the company’s vertical integration and potential to compete with industry leaders. Stifel analysts have also maintained their Buy rating with a $27 price target, citing the company’s inclusion in these defense programs as a significant milestone. Rocket Lab’s upcoming plans include a hypersonic test flight for the Department of Defense, scheduled for 2026, as part of the MACH-TB 2.0 program. The company’s continued success in securing government contracts and its advancements in hypersonic technology are expected to enhance its competitive position in the aerospace sector.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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