Why Rocket Lab stock shot up again on Friday

Rocket Lab (RKLB 3.79%) The stock continues to rise. On Friday, shares of the small rocket launcher company rose 3.8% as of 11:25 a.m. ET.

If you own Rocket Lab stock, you can thank the friendly analysts at Roth MKM, as Roth raised its price target on Rocket Lab at a Buy rating this morning.

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Roth MKM predicts that Rocket Lab’s shares – currently priced at just over $23 per share – will rise another 29% to $30 per share within a year.

And why does Roth think that? Basically for the same reason as other analysts like Rocket Lab: following more well-known investment banks Morgan Stanley And CitigroupBoth of which revised their price targets upward on Monday, Roth called the new Neutron medium-lift vehicle the key catalyst for Rocket Lab’s rise.

Roth’s note today didn’t attract much attention new News, just recite what we already know about Neutron: Rocket Lab plans to conduct a test flight in 2025 and has committed at least one customer to fly on Neutron at least twice if the test flight is successful. The banker also mused that Rocket Lab could enjoy strong demand for Neutron if the rocket performs as reliably as the existing Electron family of rockets – an observation already heard from other bankers earlier in the week.

Is Rocket Lab Stock a Buy?

What Is The difference with Roth MKM is that the banker is even more optimistic about Rocket Lab’s valuation than Morgan Stanley and Citi. While MS values ​​Rocket Lab’s stock at $18 per share and Citi quotes $22, Roth boasts the highest price target on Wall Street for Rocket Lab. (This depends on Bank of Americawho also thinks $30 is a good price).

Personally, I fear that this is all a bit irrationally exaggerated. If Rocket Lab’s stock is valued at 30 times today’s sales, it would soon cost costs to rise another 29% 39x sales. As great as this space stock is, I wouldn’t pay any price to own it.