Rocket Lab: Neutron's First Flight And More Set Up A Profitability Inflection

Michael Del Monte 7.62K Followers Follow Summary Rocket Lab is nearing a major inflection point, targeting profitability in eFY27, driven by Neutron launches and the pending Iridium acquisition. RKLB's backlog has grown to $2.36b with robust defense and commercial contracts, supporting durable revenue growth and an improving operational outlook. The company's strong cash position, expanding contract pipeline, and pending acquisition of Iridium position it for self-financing operations and reduced reliance on equity markets in the coming years. I reiterate a Strong Buy rating for RKLB with a $150/share price target at 60x eFY27 price/sales, rising to $175/share if Iridium closes. imaginima/iStock via Getty Images Rocket Lab Corporation ( RKLB ) is approaching a major inflection point in eFY27 as the company nears profitability. With Rocket Lab reinvesting in operations to bring Neutron to market, I'm expecting some near-term margin compression before the company This article was written by Michael Del Monte 7.62K Followers Follow Monte Independent Investment Research: Michael Del Monte is a buy-side equity analyst with expertise in the technology, energy, industrials, and materials sectors. Prior to working in the investment management industry, Michael spent over a decade in professional services working across industries that include O&G, OFS, Midstream, Industrials, Information Technology, EPC Services, and consumer discretionary. Analyst’s Disclosure: I/we have a beneficial long position in the shares of RKLB either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.