Rocket Lab: A Strong Buy On Growth Prospects And Backlog Strength

Summary:

  • Rocket Lab is positioned as the second-leading commercial space company behind SpaceX, with a solid backlog and positive developments with big new government contracts.
  • The company offers end-to-end space services, including launch services and space systems design and manufacturing.
  • Despite risks inherent in the rocket business, Rocket Lab has demonstrated launch consistency and has improved its gross margins over time as introductory prices phase out.
  • Its valuation looks modest vs. the opportunity set. We rate the stock a “Strong Buy”.

Ballistic launch rocket

Alexyz3d

The rocket business is often a turbulent one, and few companies know this better than Rocket Lab (NASDAQ:RKLB), the rocket launch and space systems company that’s been around since 2006. Originally founded in New Zealand by current CEO


Analyst’s Disclosure: I/we have a beneficial long position in the shares of RKLB either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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