Rocket Lab USA, Inc. (NASDAQ:RKLB) Just Reported And Analysts Have Been Lifting Their Price Targets

As you might know, Rocket Lab USA, Inc. (NASDAQ:RKLB) just kicked off its latest quarterly results with some very strong numbers. It looks like a positive result overall, with revenues of US$105m beating forecasts by 2.4%. Statutory losses of US$0.10 per share were 2.4% smaller than the analysts expected, likely helped along by the higher revenues. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Rocket Lab USA after the latest results.

View our latest analysis for Rocket Lab USA

Following the latest results, Rocket Lab USA's twelve analysts are now forecasting revenues of US$594.2m in 2025. This would be a substantial 63% improvement in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 34% to US$0.25. Before this earnings announcement, the analysts had been modelling revenues of US$596.5m and losses of US$0.24 per share in 2025. So it's pretty clear consensus is mixed on Rocket Lab USA after the new consensus numbers; while the analysts held their revenue numbers steady, they also administered a moderate increase in per-share loss expectations.

Despite expectations of heavier losses next year,the analysts have lifted their price target 84% to US$14.36, perhaps implying these losses are not expected to be recurring over the long term. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Rocket Lab USA analyst has a price target of US$25.00 per share, while the most pessimistic values it at US$5.00. With such a wide range in price targets, analysts are almost certainly betting on widely divergent outcomes in the underlying business. As a result it might not be a great idea to make decisions based on the consensus price target, which is after all just an average of this wide range of estimates.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We can infer from the latest estimates that forecasts expect a continuation of Rocket Lab USA'shistorical trends, as the 48% annualised revenue growth to the end of 2025 is roughly in line with the 46% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 4.4% annually. So it's pretty clear that Rocket Lab USA is forecast to grow substantially faster than its industry.

The Bottom Line

The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at Rocket Lab USA. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that in mind, we wouldn't be too quick to come to a conclusion on Rocket Lab USA. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Rocket Lab USA going out to 2026, and you can see them free on our platform here..

Before you take the next step you should know about the 3 warning signs for Rocket Lab USA that we have uncovered.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.