Rocket Lab: Strong Buy With An Investment Case That Goes Beyond Neutron

Dhierin Bechai Investing Group Leader Follow Summary Rocket Lab delivered record Q2 revenue of $234 million, a strong gross margin, and robust backlog growth, underscoring its successful vertical integration strategy. I maintain a strong buy rating, supported by defense contract wins, expanding Space Systems, and the transformative Iridium acquisition, despite ongoing Neutron development risks. Neutron's first flight may slip to 2027, but demand is secured, and early capacity discipline supports long-term margin maturation and pricing power. RKLB's cash burn and dilution risks remain, yet 2028 price targets imply 11%–70% upside as margins mature and free cash flow turns positive post-Iridium acquisition. Looking for more investing ideas like this one? Get them exclusively at The Aerospace Forum. Learn More » Elen11/iStock via Getty Images Shares of Rocket Lab ( RKLB ) have gained almost 11% since my last report , in which I marked the stock a strong buy. Following the company’s planned acquisition of Iridium ( IRDM This article was written by Dhierin Bechai 24.53K Followers Follow Dhierin-Perkash Bechai is an aerospace, defense and airline analyst. Dhierin runs the investing group The Aerospace Forum, whose goal is to discover investment opportunities in the aerospace, defense and airline industry. With a background in aerospace engineering, he provides analysis of a complex industry with significant growth prospects, and offers context to developments as they occur, describing how they might affect investment theses. His investing ideas are driven by data informed analysis. The investing group also provides direct access to data analytics monitors. Learn more. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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.