Rocket Lab USA (RKLB) PT Raised to $13 at BofA Securities

BofA Securities analyst Ronald Epstein raised the price target on Rocket Lab USA (NASDAQ: RKLB) to $13.00 (from $12.00) while maintaining a Buy rating, saying "all is well" with consistent operations, solid systems business and strong balance sheet.

The analyst commented, "While most space companies continue to grapple with inconsistent operations, mounting development costs, and increasing liquidity concerns, Rocket Lab (NASDAQ: RKLB) continues to execute according to plan. On the launch side of the business, the main hurdle remains customer readiness (i.e. no company-specific issues), with slightly softer revenues expected in 4Q22 as some customers have pushed launches into 1Q23. Additionally, the development of the launch platform continues to be supported by the Space Systems business, which boasts over two years of positive gross margins and solid growth in four of five business areas. With regard to liquidity, RKLB is in a much more advantageous position than its space peers. The company possesses a cash balance of $333mn as of 3Q22, providing RKLB enough dry powder to continue its Neutron medium launcher development and conduct further M&A."

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