Rocket Lab USA Inc (NASDAQ:RKLB) shares hit a new all-time high in early Monday trading, fueled by a price target increase from Citigroup. The investment bank maintained its Buy rating on the aerospace manufacturer while raising its 12-month price target from $33 to a bullish $50 per share. Here’s what investors need to know.
What To Know: Per a report from Investing.com, Citi’s heightened optimism stems from Rocket Lab’s substantial advancements in its reusable Neutron rocket program and the continued expansion of its space systems and satellite manufacturing division.
The firm has adjusted its valuation model, now projecting the company’s revenue to reach approximately $2.6 billion by 2029, a timeframe they believe will better reflect a mature business state. This forecast anticipates 20 annual Neutron launches alongside a growing portfolio of satellite construction contracts, particularly with the U.S. government.
The stock’s impressive trajectory, marking a 630% return over the past year, has also been bolstered by other positive developments in recent sessions. Last week, KeyBanc raised its price target on RKLB, and the company’s recent inclusion in the Russell 1000 index is expected to attract greater institutional investment.
Benzinga Edge Rankings: Data from Benzinga Edge provides another lens through which to view RKLB’s recent activity. According to Benzinga’s stock rankings, Rocket Lab shows exceptional Momentum, with a score of 99.09 out of 100. This top-tier rating reflects the stock’s powerful price appreciation and positive trend, aligning with its recent surge to an all-time high.
In stark contrast, the stock scores a low 5.70 for Value, suggesting that by these metrics, it may be considered overvalued at its current price. This combination highlights a classic high-momentum stock, favored by traders for its strong upward movement but viewed with caution by investors focused on fundamental value.
Price Action: According to data from Benzinga Pro, RKLB shares are trading higher by 8.17% to $42.22 Monday morning. The stock has a 52-week high of $42.88 and a 52-week low of $4.22.
Read Also: This Is ‘One Of The Hottest Stocks In The Universe,’ Jim Cramer Says
How To Buy RKLB Stock
By now you're likely curious about how to participate in the market for Rocket Lab USA – be it to purchase shares, or even attempt to bet against the company.
Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.
In the case of Rocket Lab USA, which is trading at $42.22 as of publishing time, $100 would buy you 2.37 shares of stock.
If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.
Image: Shutterstock
