Rocket Lab delays Neutron rocket launch to 2027, shares tumble and analysts trim price targets
Rocket Lab announced that the first launch of its Neutron medium‑lift rocket has been pushed back to 2027 after a manufacturing defect was found in the propellant dome. The news sent the stock down 6%‑11% in trading, with the price falling to $51.97 in one report and $50.84 in another. Analysts kept bullish ratings but cut price targets, with KeyBanc to $100, Clear Street to $105, Roth Capital to $110, Stifel to $132, Needham to $120 and Citizens lowering its target while maintaining an Outperform rating.
Why it matters
The lower price targets imply less upside for investors; for example, KeyBanc’s $100 target suggests about 47% upside from the $55.25 price noted in Needham’s note. The delay also pushes the timeline for positive free‑cash‑flow generation further out, extending the period of cash‑flow negativity.
Key facts
- 1Rocket Lab said the Neutron rocket’s first launch has been delayed to 2027 due to a manufacturing defect in the forward propellant dome. finance.yahoo.com
- 2Shares fell 6% to $51.97 in afternoon trading after the delay announcement. 247wallst.com
- 3Shares closed at $50.84 after an 8% drop, marking the eighth consecutive day of declines. gurufocus.com
- 4KeyBanc lowered its price target to $100 from $135 and kept an Overweight rating. finance.yahoo.com
- 5Clear Street cut its price target to $105 from $129 and kept a Buy rating. finance.yahoo.com
- 6Roth Capital maintained a Buy rating with a $110 price target. finance.yahoo.com
Summary written by AlphAI AI Desk from 9 of 9 sources. Not investment advice. Figures are as stated by the linked sources.