Launch Market Leaders Rocket Lab Count Down

New Zealand-founded Rocket Lab stock is ready for take-off, according to US investment bank and financial services company, Cowen. Carmen Reinicke reports for CNBC.

The firm recently upgraded shares of the company to outperform from market perform and raised its price target to $8.00 from $6.50. The new target price is a 55 per cent upside to where shares currently trade.

“We’re upgrading RKLB to Outperform for key execution milestones, an improved competitive position, and benefits from Russian sanctions,” analyst Cai von Rumohr said.

Rocket Lab is the leader in the launch market, with the best US launch record after SpaceX, according to Cowen. Its demonstrated success, low-cost reusable design, scale-cost advantages, product growth plan with medium-launch vehicle Neutron and that it uses its own launch pads are all competitive advantages.

“It’s also an end-to-end merchant supplier of space systems,” von Rumohr said. “These make it the launch provider [after SpaceX] most likely to achieve financial success.”

Original article by Carmen Reinicke, CNBC, August 31, 2022.