Investing.com - Citizens has reiterated its Market Perform rating on Rocket Lab USA (NASDAQ:RKLB) following the company’s mixed third-quarter results for fiscal year 2025.
Rocket Lab reported revenue of $155.1 million in the quarter, representing a 48% year-over-year increase and exceeding the consensus estimate of $151.9 million. However, the company posted an adjusted EBITDA loss of $26.3 million, which was worse than the consensus expectation of a $22.0 million loss.
Rocket Lab’s CEO Sir Peter Beck highlighted strong demand for the company’s Electron launch vehicle, noting, "Electron demand is accelerating faster than ever before, and the momentum continues to build with our largest launch contract backlog yet with 49 launches on contract." The company has completed 16 missions this year, matching its launch record from the previous year.
The stock has gained approximately 101% year-to-date, significantly outperforming both the S&P Aerospace & Defense ETF (XAR), which is up about 42%, and the Russell 3000 index, which has risen approximately 15% during the same period.
Citizens noted that Rocket Lab currently trades at a calendar year 2026 estimated enterprise value to revenue multiple of 30.4x, representing a premium of about 424% compared to the aerospace and defense peer group mean multiple of 5.8x, which the firm believes indicates a balanced risk/reward profile.
In other recent news, Rocket Lab USA reported strong financial results for the third quarter of 2025, with revenue reaching $155 million, marking a 48% year-over-year increase. Analysts have responded positively to these results, with Stifel raising its price target for Rocket Lab USA to $75, citing the company’s better-than-expected performance and the solid momentum of its Electron rocket program. This program has added 17 launches to its backlog, valued at approximately $145 million, with average selling prices on the rise. Roth/MKM also increased its price target to $75, highlighting stronger margins and a growing backlog as key factors. Meanwhile, Cantor Fitzgerald raised its price target to $72, noting the potential impact of Rocket Lab’s upcoming Neutron launch vehicle, which could offer an alternative to SpaceX’s Falcon 9. These developments reflect a positive outlook from analysts, who maintain favorable ratings on the stock.
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