Rocket Lab: The Stock Is More Expensive Now, But I've Still Decided To Buy (Archive)
Rocket Lab's $2.2B backlog and clean technical breakout justify buying despite a 33% 15-year revenue CAGR ask.
This 5-Minute Pitch was originally published on Seeking Alpha. It is shared here to showcase my work and track record. 5-Minute Pitches published only this site will not be disseminated anywhere else and will remain behind a paywall, accessible only to Hunter Tier members.
Elevator Pitch
- Neutron is securing large multi-year launch bookings before its official debut, pushing Rocket Lab's total backlog to $2.2 billion.
- New neutron and electron contracts are priced at average selling prices, indicating pricing power and supporting stable or possibly higher gross margins.
- The Motiv Space Systems acquisition at $60 million values the target at a steep premium to similar aerospace manufacturers, increasing the risk of overpaying.
- RKLB's implied 15-year revenue CAGR requirement has risen to 33% from 29% earlier this year, meaning the stock now embeds more aggressive expectations and is more expensive.
- The company recently broke out from a 3-month consolidation base, creating a clean bullish technical setup following prior accumulation.
Read the full article here.
