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Rocket Labs USA (RKLB) has been in full focus since it reported Q1 earnings last week, but that’s not the only reason investors are watching it closely.
The space exploration and technology company is considered a competitor to Elon Musk’s SpaceX and has enjoyed significant growth over the past year, rising from less than $5 per share to its current price of almost $22.
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Since the stock is up more than 400% for the year, it's been hard for investors not to pay attention.
One veteran Wall Street analyst has been bullish on Rocket Labs for some time, even as others have speculated that its growth may not be sustainable. He recently revamped his RKLB stock price target, laying out several key advantages of the company as it prepares for a pivotal chapter.
One investing expert isn’t holding back in his Rocket Lab take
Stephen "Sarge" Guilfoyle, a veteran Wall Street analyst with more than 30 years of experience on the trading floor of the New York Stock Exchange (NYSE), follows Rocket Labs closely. After the company’s strong Q1 earnings report, he increased his price target, citing multiple positive catalysts.
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Guilfoyle increased his RKLB stock price prediction from $28 to $30 per share, not a significant increase but still implying quite a bit of upside potential. The analyst maintains a long position in the stock.
As he notes, the company came in above Wall Street estimates on both top and bottom-line metrics with a sale spring that led to 321% year-over-year (YOY) growth.
Additionally, Guilfoyle highlights that Rocket Labs reported $80.804 million in product revenue and $41.765 million in service revenue, gains of 49.2% and 8.1%, respectively. Those factors are encouraging on their own, but Guilfoyle also sees several positive attributes that are likely to help contribute to the company’s growth in the coming year.
“During the quarter, the firm successfully on-ramped the Neutron rocket to the Department of Defense's $5.6 billion national Security Space Launch program (Phase 3, lane 1),” he states, adding that Rocket Labs also pulled off five successful Electron mission launches for three different commercial satellite constellation operators.
That’s far from the only key update from Rocket Labs, though. Guilfoyle also highlights a recent news update in which the company revealed it will be joining a cargo mission with the U.S. Air Force Research Lab to launch a medium-lift reusable Neutron rocket.