Cantor Fitzgerald reiterates Rocket Lab stock Overweight rating at $96

Cantor Fitzgerald reiterates Rocket Lab stock Overweight rating at $96

Gold slides as U.S.-Iran conflict lifts oil, hawkish Fed bets grow Investing.com - Cantor Fitzgerald reiterated an Overweight rating and $96.00 price target on Rocket Lab USA (NASDAQ:RKLB) stock following the company’s recent mission completion for the U.S. Space Force. The stock currently trades at $81.04, down ~13% over the past week, though it has delivered impressive returns of ~108% over the past year. Rocket Lab last week announced it successfully completed a launch for the U.S. Space Force’s VICTUS HAZE mission.

The mission marked the first time a prime contractor completed an all-in-one mission with responsibility for the rocket, satellite, and on-orbit operations for a Tactically Responsive Space assignment. The firm cited the space industry’s significant launch constraints and few alternatives to the Falcon 9 as factors supporting its bullish stance. Cantor Fitzgerald pointed to Rocket Lab’s track record of more than 90 successful space launches, its three different launch vehicles including Electron, Haste and the upcoming Neutron, and its customer diversification across commercial and government sectors.

The firm noted Rocket Lab’s dedicated launchpads in New Zealand and the U.S. as material differentiators. Cantor Fitzgerald views the recently announced Iridium acquisition as transformative and as validation of Rocket Lab’s positioning as a vertically integrated end-to-end space company. The company’s financial position supports its ambitious growth plans, with an InvestingPro analysis showing Rocket Lab holds more cash than debt on its balance sheet and maintains a strong current ratio of 4.47.

Revenue growth remains robust at ~46% over the last twelve months, though the company trades at what InvestingPro considers an overvalued level relative to its Fair Value. Investors can access the comprehensive Pro Research Report on RKLB, one of 1,400+ US equities covered, for deeper insights into the company’s valuation and growth trajectory. Rocket Lab remains on track for its first medium-sized launch of Neutron later this year.

Cantor Fitzgerald will host Rocket Lab’s management team for investor meetings in New York and Boston on July 28-30. In other recent news, Rocket Lab has announced its acquisition of Iridium Communications in a deal valued at approximately $8 billion. Under the agreement, Iridium shareholders will receive $27.00 in cash, along with Rocket Lab shares based on an exchange ratio.

This acquisition marks a significant expansion for Rocket Lab, as it aims to integrate Iridium’s capabilities into its operations. Meanwhile, Morgan Stanley has reiterated its Overweight rating on Rocket Lab stock, maintaining a price target of $105.00. The firm highlighted the strategic importance of the Iridium acquisition in its valuation assessment.

Additionally, Rocket Lab successfully completed the U.S. Space Force’s VICTUS HAZE mission, demonstrating rapid satellite deployment capabilities. This mission required swift design, launch, and operational execution, all completed ahead of schedule. In a related development, Amazon has reached a milestone with its Leo satellite constellation, positioning itself to compete with SpaceX’s Starlink.

Reports suggest Amazon may also pursue acquiring Globalstar to enhance its orbital spectrum assets.