Rockets Return To Earth, But Rocket Lab Likely Won't Return To Under $20

2025-05-15 13:50:22 ET

Summary

• I have to reiterate my Buy rating on Rocket Lab USA, Inc. stock, as the upcoming Neutron launch and potential $5.6B NSSL contract are major catalysts.
• Q1 2025 revenue beat guidance, but EPS missed; I see the recent RKLB stock dip as a buying opportunity and expect strong support above $20.
• Successful return-to-Earth missions are a huge game-changer that will expand Rocket Lab's customer base, opening new revenue streams beyond traditional satellite launches.
• Despite a high valuation by some metrics, I believe Rocket Lab is undervalued given its growth trajectory, unique tech, and imminent contract opportunities.
• I hereon share my sentiment on Rocket Lab and why I see more upside ahead.

Investment Thesis

I last covered Rocket Lab USA, Inc. ( RKLB ) back in April , when we had just learnt the big news of a potential new government contract on the table. A whopping $5.6 billion U.S. Space Force contract, and investors are hoping this will be the needed boost for Rocket Lab. Of course, the securing of such a contract will require a successful Neutron launch. It's no secret that this will be the catalyst for Rocket Lab; a triumphant launch will send the stock through the roof....

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