Shares of aerospace company Rocket Lab USA (RKLB) fell in today’s trading as investors await its Q4 earnings results on February 27 after the market closes. Analysts are expecting earnings per share to come in at -$0.09 on revenue of $130.57 million. This equates to a $0.01 decrease in EPS compared to Q4 2023 but a 117.6% jump in revenue.
As a result of this strong revenue growth, five-star Citi analyst Jason Gursky recently reiterated a Buy rating on RKLB stock while raising his price target from $22 to $35 per share. This is because he expects to hear positive comments about demand from companies that operate in the space industry.
Separately, KeyBanc, led by 4.3-star analyst Michael Leshock, also increased its price target for Rocket Lab’s stock from $27 to $32. This change is due to recent milestone achievements and the Trump administration’s stronger commitment to supporting the space industry. As a result, KeyBanc maintained its positive outlook on the stock with an Overweight rating.
What Do Options Traders Anticipate?
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. Indeed, the at-the-money straddle suggests that options traders expect a 16.1% price move in either direction. This estimate is derived from the $20.50 strike price, with call options priced at $1.53 and put options at $1.73.
Is RKLB Stock a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on RKLB stock based on five Buys, two Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. After a 343% rally in its share price over the past year, the average RKLB price target of $27.08 per share implies 33.5% upside potential.
