Rocket Lab USA, Inc (NASDAQ:RKLB) stock jumped after Citigroup analyst Jason Gursky reinstated the stock with a Buy rating and a $6 price target. The stock climbed over 9% on Monday.
The re-rating followed recent capital markets transactions and a significant award by the U.S. government.
The analyst noted that the former provides the company with sufficient liquidity to execute its current backlog, develop new products, and engage in bolt-on M&A.
Also Read: Rocket Lab Has A Proven Business Model and Viable Profitability Path In 1-3 Years: Keybanc Analyst
The latter proves that customer adoption of the company’s products is accelerating.
The analyst derived the price target of $6 using a recent transaction multiple of 3.6x set against his 2026 revenue estimate.
Earlier in February, the company ...