Needham Reiterates Buy Rating on Rocket Lab USA (RKLB)

Needham analyst Ryan Koontz reiterated a Buy rating and $120.00 price target on Rocket Lab USA (NASDAQ: RKLB).

The analyst comments "On October 14 RKLB CEO Sir Peter Beck announced a further delay of Neutron's maiden launch. The company discovered small air pockets ("voids") had developed on the forward dome of its booster fuel tank made of carbon composite. These voids weaken the structure of the dome. The problem has been corrected in its manufacturing process, but the setback means Neutron will incur a minimum 4 month delay for qualification test and assembly. When key tests of the new design are successfully completed as early as January, the company will establish a new launch date, not expected to be before 2Q27. As a result, we lower our F27 revenue estimate on fewer Neutron revenue flights, and revised lower revenue estimate for Neutron flight 2."

For an analyst ratings summary and ratings history on Rocket Lab USA click here. For more ratings news on Rocket Lab USA click here.

Shares of Rocket Lab USA closed at $55.25 yesterday.

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