Rocket Lab price target raised to $22 from $13 at Citi

Citi analyst Jason Gursky raised the firm’s price target on Rocket Lab (RKLB) to $22 from $13 and keeps a Buy rating on the shares. The company’s Q3 results and 4Q outlook were modestly better than consensus expectations, but the most important recent announcement was that it booked its launch customer for the Neutron rocket, which is set for first flight in 2025, the analyst tells investors in a research note. Citi says this is a key milestone as it demonstrates customer acceptance and helps solidify the business case for the product. There is likely upside potential to the available supply of the rocket than management is letting on given solid execution on both the Electron and Neutron programs to date, contends the firm. It cites a higher valuation multiple given the Neutron risk retirement for the target increase.