Deutsche Bank Initiates Rocket Lab USA as a Buy

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Deutsche Bank initiated Rocket($NASDAQ:RKLB) Lab USA as a buy on Tuesday, citing the company’s investor day as a near-term catalyst. The Bank’s analysts indicated that updates on the backlog and path to profitability expected to come during the presentation should serve as a quick boost to the stock. In the long term, Deutsche Bank is bullish on Rocket Lab’s ability to capitalize on the growing small satellite market.

Stock Price

The stock opened at $5.5 and closed at $5.6, down by 1.4% from last closing price of 5.7. The company has developed a reusable rocket, Electron, which is designed to deliver payloads to orbit quickly and efficiently. The company is well-positioned to continue its growth trajectory and we believe the stock is undervalued.

VI Analysis

This means that it has achieved high revenue or earnings growth, but is considered less stable due to lower profitability. ROCKET LAB USA is strong in asset and growth, but weak in dividend and profitability. However, the company’s fundamentals reflect its long-term potential and it has a high health score of 8/10 with regard to its cashflows and debt. This means that it is capable of safely riding out any crisis without the risk of bankruptcy.

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Summary

“Rocket Lab is well-positioned to capitalize on the accelerating growth of the small satellite market with its proven track record of delivering small satellites to orbit, competitive cost advantage, and ability to scale its launch capability,” Deutsche Bank analyst Myles Walton said in a note to clients. “the company’s launch services business is well-positioned for growth and believe Rocket Lab has the potential to emerge as a leading provider of small satellite launch services.”.