![]() But, as I say, at this price, its valuation is extended at $6.89 billion. Since then it has drifted back down about a quarter to $15.39. At one point it was up over 100% at a peak of $21.34 on Sept. RKLB stock was below $10 right before the stock shot up with the merger close ($9.96 on Aug. One reason is that he expects that Rocket Lab will make positive free cash flow (FCF) by 2024. The magazine quotes Canaccord Genuity analyst Austin Moeller as saying that Rocket Lab’s “competitive advantage over new market entrants and production scale justify significant upside in the stock price.” He puts the value of RKLB stock at $30. One reason for this could be that the rocket launch industry is forecast to reach $11 billion by 2030, up from a few hundred million dollars in 2021, according to Barron’s. For example, TipRanks indicates that the average price target is $24 per share. But one would expect this to be the case given analysts’ revenue forecasts.Īnd those analysts seem RKLB stock is worth this kind of valuation. Granted, the company announced some good new contract wins. The reason is that the half-year earnings results, although good, do not seem to justify the higher valuation. It’s almost as if, at this price, you have to choose. As a result, this means that either the market is right about its revenue and earnings prospects or analysts’ forecast are closer to the truth. These multiples would be high even if the underlying measurement was a price-to-earnings (P/E) metric. ![]() That puts the stock on a P/S multiple of 38.7 times 2022 sales and 26.4 times 2023 sales. For example, according to Seeking Alpha, even by 2022 forecast revenue is seen as just $178 million and $261 million by 2023. For one, analysts simply don’t forecast revenue gains that justify this kind of valuation. ![]()
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