Rocket Lab initiated with a Neutral at Goldman Sachs

Goldman Sachs initiated coverage of Rocket Lab with a Neutral rating and $4.50 price target. Rocket Lab has established itself as the go-to dedicated launch provider while also growing a products business within the space ecosystem, the analyst tells investors in a research note. However, the firm says the company is currently EBITDA and free cash flow negative, in an investment cycle with Neutron, and the level of, and path to, future profitability has uncertainty. It sees the stock’s current valuation as reasonable given a balanced risk/reward.