KeyBanc Capital Markets has lowered its investment rating on Rocket Lab USA Inc. (RKLB) to “sector weight” from “overweight.”
The research firm believes growth catalysts for the company have been realized but continues to view RKLB as “one of the highest quality companies within the Space sector.”
“We recognize RKLB is in a high-growth and evolving sector, and this could present opportunities for us to get constructive again,” KeyBanc said in its January 14 research note. “We continue to believe that if you hold the keys to space, you are going to be a dominant player.”
KeyBanc said it could become more constructive on RKLB down the line if it manages to secure additional large contracts, provides clarity on potential long-term satellite constellations, and if government budgets increase, among other things.
RKLB currently doesn’t have a price target from the research firm.
