SpaceX competitor Rocket Lab pared its weekly gains on Thursday after analysts hiked price targets after its earnings beat. Shares of the satellite launcher soared Wednesday on its Q3 results, now vaulting 240% rally so far this year. AST SpaceMobile, a satellite manufacturer and SpaceX partner, is scheduled to report late Thursday.
Rocket Lab late Tuesday reported a loss of 10 cents per share, widening from a loss of 8 cents last year. Revenue increased 55% to $105 million.
FactSet expected a loss of 11 cents per share on 51% revenue growth to $102.3 million.
The company's backlog rose to $1.05 billion, while analyst estimates were just shy of $1.1 billion.
Rocket Lab also noted that its Electron rocket is the third most-frequently launched rocket in the world in 2024, trailing only SpaceX and China.
Looking ahead, Rocket Lab expects Q4 revenue between $125 million and $135 million, ahead of FactSet estimates of $121 million.
Separately, the company also announced a new launch service agreement with a confidential commercial satellite constellation operator for its medium-lift rocket Neutron. As part of the contract, Rocket Lab will launch two missions on the Neutron in mid-2026. Financial details of the deal were not disclosed. The reusable launch vehicle is expected to conduct its debut launch in 2025, at which point Rocket Lab hopes it can on-ramp onto the U.S. Government's National Security Space Launch (NSSL) Lane 1 program, which has a contract valued at $5.6 billion over a five-year period.
Rocket Lab projects more than 10,000 satellites will need launch services by 2030, and the company estimates the total addressable market value will balloon to about $10 billion.
Analysts Hike Targets
BofA in a Thursday note wrote that Rocket Lab's capabilities in launch and spacecraft development are advancing the company's goal of becoming an end-to-end space provider, The Fly reported. The firm hoisted its price target on shares to 30 from 10 to reflect stronger free cash flow from the company's space systems and Electron rocket profitability. BofA also expects lower market risk as Rocket Lab "emerges as a key space prime." The firm maintained a buy rating on RKLB stock.
Cantor Fitzgerald on Thursday also boosted its price target on RKLB stock to 24 from 7 and kept an overweight rating on the shares, citing the multi-launch agreement for the reusable Neutron rocket.
Rocket Lab Stock Soars
RKLB stock fell 7.8% Thursday after initially vaulting another 30% at the open.
Shares pared gains to 28% Wednesday after spiking more than 41% in early trade.
Shares have rocketed 214% so far this year.
Elsewhere, satellite manufacturer and telecommunications company AST SpaceMobile reports Q3 results late Thursday. FactSet expects a loss of 20 cents per share, improving from a loss of 25 cents last year. Analysts forecast sales of $1.8 million.
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