Rocket Lab Corporation (NASDAQ:RKLB) shares are trading higher on Wednesday. On Monday, the company exceeded second-quarter expectations, but analysts have mixed views on its future price forecasts, which range from $115 to $122.
Earnings Snapshot
Rocket Lab reported a second-quarter loss of 8 cents per share, missing the consensus estimate of a loss of 7 cents per share. In addition, the company reported revenue of $234.07 million, beating the consensus estimate of $231.35 million.
The company guided for third-quarter revenue of $250 million to $265 million, versus the consensus estimate of $238.53 million. The company also anticipates an adjusted EBITDA loss of $17 million to $23 million for the third quarter.
Analyst Consensus & Recent Actions: The stock carries a Buy rating with an average price forecast of $107.71. Recent analyst moves include:
- Cantor Fitzgerald analyst Andres Sheppard reaffirmed an Overweight rating, while raising the price target from $96 to $122.
- BofA Securities analyst Ronald Epstein maintained a Buy rating and price target of $115.
- BTIG analyst Andre Madrid reiterated a Neutral rating on the stock.
Cantor Fitzgerald analyst Andres Sheppard said Neutron could become the only viable alternative and closest competitor to Falcon 9 once operational. He expects strong Neutron demand to significantly improve unit economics and speed up Rocket Lab’s path to profitability.
BTIG analyst said Rocket Lab’s stronger-than-expected results were supported by significant wins across its Launch and Space Systems businesses, highlighting continued progress toward becoming a fully integrated space company following the planned Iridium Communications Inc (NASDAQ:IRDM) acquisition.
RKLB Technical Outlook: Key Support, Resistance And Momentum
Currently, Rocket Lab’s stock price sits at $79.85, which is 1.9% above its 200-day simple moving average (SMA) of $78.15, indicating a slight bullish trend in the long term. However, it is 9.4% below its 50-day SMA of $87.92, suggesting potential resistance at that level.
The primary momentum indicator, the RSI, is currently at 51.08, indicating a neutral position in the market. This suggests that the stock is neither overbought nor oversold, allowing for potential movement in either direction. The MACD is also in a neutral position, with the MACD line hovering around the signal line, indicating that momentum is stable but could shift depending on market conditions.
- Key Resistance: $93.00 — a nearby level where rebounds can stall.
- Key Support: $64.00 — a nearby level where buyers previously stepped in.
How Rocket Lab Ranks On Momentum Versus The Market
Below is the Benzinga Edge scorecard for Rocket Lab, highlighting its strengths and weaknesses compared to the broader market:
- Momentum: Strong (Score: 79.53) — Stock is outperforming the broader market.
The Verdict: Rocket Lab’s Benzinga Edge signal reveals a momentum-driven story, indicating positive performance relative to the market. However, the mixed analyst outlook suggests that investors should remain cautious as the company navigates its growth trajectory.
RKLB ETF Exposure: Top Funds Holding Rocket Lab
- ARK Autonomous Technology & Robotics ETF (BATS:ARKQ): 3.41% Weight
- ARK Space & Defense Innovation ETF (NASDAQ:ARKX): 4.88% Weight
- Defiance Space and Connective Tech ETF (NASDAQ:UFOX): 3.70% Weight
Significance: Because RKLB carries significant weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.
RKLB Price Action: Rocket Lab shares were up 2.24% at $81.80 at the time of publication on Wednesday, according to Benzinga Pro data.
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