Rocket Lab: Why I Would Buy More Now

2025-02-13 12:46:06 ET

Summary

• Rocket Lab USA, Inc. stock has more than doubled since my early November 2024 bullish call, outperforming the broader market's modest gains.
• RKLB's strong financial performance, particularly in Space Systems, and promising future projects like Neutron, support my bullish long-term outlook.
• Despite increased operating expenses, the top line growth justifies the costs, with expectations of breaking even by FY 2026 and significant future profitability.
• I expect that as Rocket Lab successfully scales, its business model should lead to a faster-than-expected breakeven during FY 2026, so it should catalyze the stock to explore new heights.
• While risks exist, such as Neutron's deployment and EPS projections, RKLB's market potential and strategic initiatives reaffirm my "Buy" rating.

Intro & Thesis

Rocket Lab USA, Inc. ( RKLB ) stock, whose coverage I initiated in early November 2024, turned out to be one of my most successful Buy-rated picks on Seeking Alpha: while the broader market went up by a bit less than 1% since the time of publication, the RKLB stock price more than doubled....

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