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Investing.com - Goldman Sachs (NYSE:GS) has assumed coverage on Rocket Lab USA (NASDAQ:RKLB) with a Neutral rating and a $27.00 price target. According to InvestingPro data, the stock appears overvalued at current levels, with a market capitalization of $16.33 billion and significant price volatility (Beta: 2.09).
The investment bank views Rocket Lab as having established itself as the "go-to dedicated launch provider" and a reliable second option for space launch after SpaceX.
Goldman Sachs notes that Rocket Lab has grown its products business by leveraging its launch relationships to gain additional customer wallet share.
The firm expects significant operating leverage and scale as Rocket Lab increases its launch cadence and begins flying revenue-generating Neutron missions.
Despite these positive factors, Goldman Sachs points out that Rocket Lab is not currently profitable or generating positive cash flow, remains in an investment cycle with Neutron development, and has limited visibility into its path to normalized financials.
In other recent news, Rocket Lab USA, Inc. successfully launched its 67th Electron rocket, carrying four satellites for HawkEye 360. This mission, named "Get The Hawk Outta Here," deployed satellites into a 520 km circular low Earth orbit from Rocket Lab’s Launch Complex 1 in New Zealand. The launch marked the second of three dedicated missions under a multi-launch contract with HawkEye 360. Rocket Lab is also preparing for its next mission, "Symphony In The Stars," scheduled to occur less than 48 hours after this recent deployment, demonstrating the company’s rapid launch capabilities. This upcoming mission will be Rocket Lab’s 68th Electron launch and its tenth mission this year from the same site. Cantor Fitzgerald has maintained its Overweight rating on Rocket Lab, highlighting its competitive positioning and successful launch track record. The firm noted Rocket Lab’s discussions on launch cadence and its space systems business as key factors in maintaining a positive outlook. Rocket Lab’s quick turnaround and growing launch frequency continue to demonstrate strong demand for its services.
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