Rocket Lab Stock: Can the High-Flying Rally Withstand a Reality Check?

Following a staggering surge in its share price over the past year, the investment narrative surrounding Rocket Lab USA is undergoing a significant shift. The focus is moving away from its impressive operational track record and toward the substantial risks and valuation concerns tied to its next growth phase. A prominent analyst downgrade has applied the brakes to recent euphoria, casting a spotlight on one pivotal project: the forthcoming Neutron rocket.

The central critique now facing Rocket Lab is its rich valuation after a monumental 263% advance in just twelve months. This perspective was underscored when KeyBanc Capital Markets revised its rating on the stock from “Overweight” to “Sector Weight.” Read more...