TLDR
- Raymond James initiated coverage on RKLB with an “Outperform” rating and an $80 price target, implying over 25% upside.
- Rocket Lab’s backlog hit $2.36 billion, up 137% year-over-year, with quarterly revenue up 62% to $234.1 million.
- Institutional investors including BlackRock and Bank of America made large new purchases in Q2; institutions now own 71.78% of the stock.
- Insider selling remains a concern, with over $312 million in insider sales over the past 90 days.
- The consensus analyst rating sits at “Moderate Buy” with a mean price target of $107.32.
Rocket Lab (RKLB) is trading around levels more than 55% below its year-to-date high, but Wall Street is starting to take notice again.
Raymond James analyst Brian Gesuale initiated coverage on September 11 with an “Outperform” rating and an $80 price target. That implies more than 25% upside from where the stock was trading at the time of the note.
Gesuale’s core argument is that Rocket Lab is not just a launch company. It has built out a full end-to-end mission capability, supplying components, software, and satellite platforms across civil, commercial, and national security missions.
That dual-revenue structure, combining launch services with space systems, creates recurring revenue that pure-play competitors don’t have.
The analyst believes the market is undervaluing RKLB’s long-term earnings potential as defense and scientific contracts continue to grow.
Record Backlog and Strong Revenue
Rocket Lab ended its most recent reported quarter with a backlog of $2.36 billion, up 137% compared to the same period last year. That kind of visibility is rare for a company at this stage.
Quarterly revenue came in at $234.1 million, up 62% year-over-year. The company also holds a cash reserve of more than $2 billion.
Raymond James pointed to these numbers as evidence that the market is not fully pricing in the company’s longer-term earnings leverage.
Rocket Lab also completed its 95th Electron launch recently, deploying an Earth-observation satellite into a 500-kilometer orbit. It was the company’s 16th launch this year, and another commercial launch is planned before the end of September.
Institutional Buying vs. Insider Selling
Big money has been moving into RKLB. Virginia Retirement Systems acquired 10,539 shares in Q2 worth around $1.07 million. BlackRock took a new position valued at approximately $4.1 billion. Bank of America added a new stake worth roughly $437 million. Institutional investors now hold 71.78% of the company.
On the flip side, insiders have been selling. Over the past 90 days, insiders sold more than $312 million worth of stock, with 97 insider sales recorded and zero purchases. CEO Peter Beck was among those selling.
Some of the sales were executed under pre-arranged Rule 10b5-1 plans and tied to tax obligations from equity award vesting, but the volume is hard to ignore.
Raymond James is not alone in its bullish view. Berenberg Bank started coverage on September 2 with a “Buy” rating and an $83 target. Citizens JMP holds a $130 price target. The consensus across analysts is “Moderate Buy” with a mean target of $107.32.
One analyst, Weiss Ratings, maintains a “Sell” rating. Piper Sandler holds a “Neutral” with an $83 target.
The stock currently has four “Strong Buy” ratings, fourteen “Buy” ratings, five “Hold” ratings, and one “Sell.”
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