Rocket Lab (NASDAQ:RKLB) Stocks just keep performing higher. On Friday, shares of the small rocket launch company rose 3.8% through 11:25 a.m. ET.
If you own Rocket Lab stock, you can thank the friendly analysts at Roth MKM, because Roth raised his price target on Rocket Lab’s buy rating this morning.
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Roth MKM predicts that Rocket Lab’s stock – currently priced at just over $23 per share – will rise another 29% to reach $30 per share within a year.
And why does Roth think this? Actually for the same reason as other analysts such as Rocket Lab: following the example of better-known investment banks Morgan Stanley And Citi Groupboth of which updated their price targets higher on Monday, Roth cited the new Neutron medium-duty vehicle as the key catalyst driving Rocket Lab higher.
Roth’s note today yielded nothing of note new news, simply reiterating what we already know about Neutron: Rocket Lab plans to conduct a test flight in 2025 and has signed up at least one customer to fly Neutron at least twice if the test flight is successful. The banker also mused that Rocket Lab could have strong demand for Neutron if the rocket performs as reliably as its existing Electron rocket family – again an observation heard from other bankers earlier this week.
What is The difference with Roth MKM is that the banker is even more optimistic about Rocket Lab’s valuation than Morgan Stanley and Citi. While MS values ​​Rocket Lab’s stock at $18 per share, and Citi says $22, Roth has the highest price target on Wall Street for Rocket Lab. (This is related to Bank of Americawho also thinks $30 is a good price to pay).
Personally, I’m afraid this is all a bit irrationally exuberant. If Rocket Lab’s stock is valued today at 30 times trailing revenue, this would quickly start to cost if Rocket Lab’s stock were to rise another 29%. 39x turnover. As great as this space supply is, I wouldn’t just pay a price for it.
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