Rocket Lab (RKLB) process is high what you need to know

The shares of the Aerospace and Defense Company Rocket Lab (Nasdaq: RKLB) rose by 3.1%in the morning session after Ronald Epstein of the Bank of America had significantly increased the price target for space companies. The analyst increased the price target from $ 30.00 to $ 50.00, a significant jump of 66.67%, while a “purchase” rating was maintained for the share. This increased the trust of investors and signaled a strong belief in future growth and market position of the company. The positive feeling was repeated by Jim Cramer from CNBC, who recently referred to Rocket Lab as “one of the hottest stocks in the universe” and repeated his recommendation “Buy, Buy, Buy”. This enthusiasm is based on the decisive role of the company in providing starting services and the production of spacecraft for a growing number of companies that have to send assets into space.

After the first pop, the shares cooled to $ 46.56 and rose 4.4% compared to the previous conclusion.

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Rocket Lab's shares are extremely volatile and last year had 75 movements of more than 5%. In this context, today's step shows that the market considers this message to be sensible, but not something that would fundamentally change its perception of the business.

The previous big move, which we wrote about, was 2 days ago when the share in the news that the company received a significant increase in the price target, increased by Citi by 7.2% and announced an important partnership for its reusable neutron rocket.

The Citi -Analyst Jason Gursky increased the company's price target for Rocket Lab from USD 33 to $ 50 and contributed a “purchase” rating. The upgrade reflects a new evaluation model that precedes the company's sales potential by 2029. At this point, Citi Projects Revenue could reach approximately 2.6 billion US dollars, which is due to 20 annual neutron launches and new satellite contracts.

Rocket Lab announced the positive dynamics and announced that Bollinger -Werften will award a contract to build the Ocean Landing Platform for its reusable neutron rocket. The 400-foot ship called “Return on Investment” is a critical piece of infrastructure that enables the rocket to land at sea and be reused for future missions. This reusability is of fundamental importance for the strategy of the neutron program in order to increase the starting frequency and serve a growing market for large satellites and national security missions.

Rocket Lab has increased by 86.6% since the beginning of the year and has set a new 52-week high with $ 46.56 per share.

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