Why BofA Is Bullish On Rocket Lab

Rocket Lab USA Inc RKLB has the most mature launch capabilities among competition and its growing satellite components business could contribute more than 50% of revenue by 2035, according to BofA Securities.

The Rocket Lab USA Analyst: Ronald Epstein initiated coverage of Rocket Lab with a Buy rating and a price target of $20.

The Rocket Lab USA Thesis: Electron rocket has conducted 22 launches and successfully deployed 107 satellites into orbit, making it the “second most frequently launched vehicle in the U.S. (behind SpaceX) and the fourth most frequent in the world,” Epstein said in the note.

“We see RKLB as the best way for investors to gain near term exposure to the small satellite and space launch markets,” the analyst wrote.

“The addition of a U.S.-located launch complex and continued Neutron development put RLKB in a prime position to benefit from the smallsat market surge that will likely persist through the remainder of the decade,” he added.

RKLB Price Action: Shares of Rocket Lab traded around $15.35 at the time of publication.