Update shared on30 Aug 2025
Fair value Increased 2.20%Rocket Lab’s price target was raised to $46.40 as analysts express increased confidence in Neutron rocket milestones, robust sector momentum, and operational advantages, moderated by ongoing unprofitability and limited visibility into profitability.
Analyst Commentary
- Bullish analysts cite increased confidence in Rocket Lab’s Neutron rocket progress, with launch pad infrastructure fully in place and readiness for initial launches.
- Upward adjustments reflect robust momentum across the aerospace and defense sector, contributing to raised estimates and optimism for the company.
- Proprietary supplier and industry surveys indicate ongoing tightness in the aerospace & defense aftermarket and sustained strength in Space & Defense, supporting elevated valuations.
- Management’s track record of successful launches, a diversified portfolio of three rocket types, and operational moats from dual launchpads are seen as strong competitive advantages.
- Bearish analysts note that despite sector leadership, Rocket Lab remains unprofitable with no current positive cash flow as it invests in Neutron development, and there is limited visibility into the financial trajectory toward sustainable profitability.
What's in the News
- Rocket Lab is expanding U.S. semiconductor manufacturing capacity, acquiring Geost, and receiving $23.9 million from the Department of Commerce to strengthen domestic supply for space-grade components, with plans to double wafer output and add over 2,000 U.S. jobs.
- The company continues its rapid launch cadence with 100% mission success, surpassing 70 Electron missions, setting new turnaround records, and landing multi-launch contracts with customers including iQPS, HawkEye 360, BlackSky, and the European Space Agency.
- Rocket Lab secured a dedicated Electron launch contract with ESA to deploy the first LEO-PNT navigation satellites, reinforcing its international profile.
- RKLB transitioned from the Russell 2000 indices to inclusion in the Russell 1000, Midcap, and related Growth and Dynamic indices.
- Amendments to the company’s Articles of Association and Certificate of Incorporation were approved at the AGM, and revenue guidance for Q3 2025 was set between $145 million and $155 million.
Valuation Changes
Summary of Valuation Changes for Rocket Lab
- The Consensus Analyst Price Target has risen slightly from $45.40 to $46.40.
- The Future P/E for Rocket Lab remained effectively unchanged, moving only marginally from 212.02x to 215.21x.
- The Discount Rate for Rocket Lab remained effectively unchanged, moving only marginally from 7.60% to 7.61%.
Disclaimer
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