RKLB
Rocket Lab Wins $266 Million Suborbital Launch Contract
Article Summary
HOLD- Rocket Lab (NASDAQ: RKLB) rose 3.15% premarket after winning a $266 million firm-fixed-price contract from the U.S.
- Department of War for suborbital launch services.
- The Long Beach company won the contract through competitive bidding that drew three offers, with work due for completion by December 31, 2028.
- The award covers 12 sub orbit vehicles with six optional additional launches, all flown from the Pacific Spaceport Complex in Alaska, with Fiscal 2025 research, development, test and evaluation funds of $112 million being obligated at award.
- Rocket Lab investors benefit from the firm- fixed-price structures putting the cost risk on Rocket Lab, meaning Rocket Lab absorbs any overruns but keeps the upside if it delivers below budget.
- The six optional launches, if exercised, would extend the value beyond the headline figure.
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Growth Stock Scoring Breakdown
| METRIC | VALUE | WEIGHT | ANALYSIS |
|---|---|---|---|
| Sales Growth TTM ? | 45.8% | 25% | 95.0 ptsOutstanding (45.8%) - Very strong |
| EPS Growth Next 5Y ? | 0.0% | 25% | 10.0 ptsVery Weak (0.0%) - Minimal expectations |
| Target Price Upside ? | 67.5% | 20% | 100.0 ptsMassive Upside (67.5%) - Target: $116.81 vs Current: $69.75 |
| Gross Margin % ? | 33.8% | 15% | 40.0 ptsModerate (33.8%) - Adequate margins |
| Drawdown from 52-Wk High ? | -53.8% | 15% | 100.0 ptsDeep Discount (-53.8%) - Best entry opportunity |
Disclaimer: This rating is for informational purposes only and is not financial advice.
All data sourced from Finviz.
Always conduct your own research and consult with a financial advisor before making investment decisions.
Past performance does not guarantee future results.
About RKLB
- Rocket Lab Corporation, a space company, provides launch services and space systems solutions in the United States, Canada, Japan, and internationally.
- The company operates through launch services and space systems segments.
- The company provides launch services, spacecraft design services, spacecraft components, spacecraft manufacturing, optical systems, and other spacecraft and on-orbit management solutions and constellation management services, as well as designs and manufactures small and medium-class rockets and develops flight and ground software.
- It also designs, manufactures, and sells Electron, an orbital small launch vehicle for small spacecraft launch services, as well as develops Neutron launch vehicles for large constellation deployments, interplanetary missions, and potentially for human spaceflight.
- In addition, the company designs and manufactures a range of components and subsystems for its launch vehicles and spacecraft.
- It serves commercial, aerospace prime contractors, and government customers.
- Rocket Lab Corporation was formerly known as Rocket Lab USA, Inc. and changed its name to Rocket Lab Corporation in August 2021.
- The company was founded in 2006 and is headquartered in Long Beach, California.