Shares of aerospace company Rocket Lab (NASDAQ:RKLB) have had a roller-coaster ride so far this year. After witnessing massive gains, this penny stock (learn more about penny stocks here) relinquished almost all of its gains and is up only about 12% year-to-date. Nonetheless, analysts’ average price target suggests that Rocket Lab stock will head north and has massive upside potential from current levels.
Let’s see why.
What is the Future of Rocket Lab Stock?
Rocket Lab specializes in rocket launch services and provides spacecraft components and space-related solutions. The stock took a hit after the company announced in September that it had postponed a previously scheduled Electron mission, initially slated for launch by the end of the third quarter. The delay in launch took a toll on its top-line numbers and margins.
The postponement of the Electron mission is keeping analysts cautiously optimistic about RKLB. However, Rocket Lab’s successful launch history, growth in launch bookings, higher pricing, and ability to lower costs augur well for long-term growth.
Rocket Lab stock has five Buy and two Hold recommendations for a Moderate Buy consensus rating. Further, the average RKLB stock price target of $7.68 implies 77.37% upside potential from current levels.
Bottom Line
It’s worth highlighting that since its first orbital launch in January 2018, Rocket Lab’s Electron launch vehicle has consistently ranked as the second most frequently launched U.S. rocket each year. Moreover, during this period, the company successfully deployed 171 satellites into orbit, catering to the needs of both private and public sector entities.
Emphasizing Rocket Lab’s strengths, TD Cowen analyst Cai von Rumohr reiterated a Buy recommendation on RKLB stock on November 10. The analyst believes that the anticipated restart of Electron launches by the end of the year, a focus on growing the rocket’s reusability, and a solid schedule comprising 22 launches for 2024 will solidify RKLB’s position as a leader in small launches and support his optimistic outlook.
While Rocket Lab stock is expected to rise (based on analysts’ average price target), investors can leverage TipRanks’ penny stock screener to find more attractive penny stocks.
