In a recent move, Needham has started coverage on Rocket Lab (RKLB, Financial), assigning it a Buy rating and setting a price target of $28. The firm highlights Rocket Lab’s innovative approach in the rapidly evolving space industry as a significant factor in its decision.
According to Needham, Rocket Lab's comprehensive vertical integration distinguishes it from its peers and positions it advantageously to potentially rival established leaders like SpaceX. The company's capabilities in providing complete satellite buses and subsystems through its Space Systems division are seeing considerable growth. This growth is being driven by increased demand for government and commercial Low Earth Orbit (LEO) constellation launches.
The firm’s analysis suggests that Rocket Lab is strategically poised to capitalize on expanding opportunities within the space sector, making it an attractive option for investors looking for exposure to this dynamic market.
