Wall Street analysts have provided mixed predictions for Rocket Lab USA (RKLB) in the next 10 years. Here's a summary of their views:
- Average Price Target: The average price target for RKLB over the next 12 months is $6.651. This suggests a potential upside from the current price of $4.58 as of August 7, 2024.
- Analyst Consensus: The consensus rating for RKLB is "Moderate Buy" with 10 analysts giving a "Buy" rating and 1 giving a "Hold" rating2. This indicates a generally positive outlook from analysts.
- Future Growth Prospects: Analysts expect the company to post a final loss in 2025 before turning a profit of $2.5 million in 20263. This suggests that while there may be a short-term loss, the long-term outlook is positive.
- Revenue and EPS Growth: The company is expected to see revenue growth of 78.22% in 2024 compared to 244.59 million in 20234. The EPS is forecasted to be -0.40 in 2024 and -0.23 in 2025, indicating a gradual improvement4.
- Breakeven Forecast: Analysts predict that Rocket Lab will be close to breakeven in 2025, with a projected revenue of $119 million3. This indicates a significant improvement in profitability.
- Investor Considerations: Investors should consider the high growth potential and the recent successful launch history, which may support a "Buy" decision. However, the current negative EPS and the upcoming potential loss should be weighed against the long-term growth prospects12.
In conclusion, while there are positive signs in the form of an average price target above the current price and a "Moderate Buy" consensus, investors should also be aware of the potential for a short-term loss and the need for the company to become profitable before fully realizing its growth potential.