Rocket Lab USA: Space Launch Business To Drive Operational Leverage
Portfolio Pulse from Priya Nigam
Rocket Lab USA Inc (NASDAQ:RKLB) shares dropped after announcing the window for its 50th Electron launch. Goldman Sachs initiated coverage with a Neutral rating and a $4.50 price target, highlighting the company's market leadership in dedicated space launches and the growth of its products business. However, concerns remain about its current negative EBITDA and free cash flow, and the uncertainty of future profitability.
June 11, 2024 | 4:18 pm
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Rocket Lab USA shares declined after announcing the window for its 50th Electron launch. Goldman Sachs initiated coverage with a Neutral rating and a $4.50 price target, noting the company's market leadership in space launches and product growth but also highlighting concerns about its current negative EBITDA and free cash flow.
The decline in RKLB shares is likely due to the announcement of the 50th Electron launch window and the Neutral rating from Goldman Sachs. The analyst's note highlights both positive aspects (market leadership, product growth) and negative aspects (current negative EBITDA, free cash flow, and uncertainty in future profitability), which likely contributed to the negative market reaction.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100