Rocket Lab: Do You Like To Buy Expensive, Overvalued Things? (Archive)
Rocket Lab’s rich valuation masks near-term growth hiccups and only modest upside catalysts.
This 5-Minute Pitch was originally published on Seeking Alpha before the launch of the Hunting Alphas website. It is shared here to showcase my previous work and track record. New 5-Minute Pitches published on this site will not be disseminated anywhere else.
Elevator Pitch
- Rocket Lab's backlog has been flat for 5 quarters and Q1 FY25 missed revenue guidance. But there are positive catalysts ahead due to recent deal wins and satellite launches.
- The acquisition of laser optics communications company Mynaric AG is a smart move for vertical integration, bought at a rather reasonable price.
- RKLB is trading at a significant premium compared to peers, making it expensive even when comparing its EV/Backlog multiples with comps' 1-yr fwd EV/Revenue multiples.
- My RKLB vs SPX500 chart outlook suggests sideways price action ahead.
- The Neutron rocket launch in H2 FY25 is a key upside risk to monitor that can lead to a step jump in many financial metrics.
Read the full article here.
Disclosures and Disclaimers
Past performance ≠ future results. Not investment advice. See full Disclaimer.
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