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Rocket Lab USA, Inc. (RKLB) has performed exceptionally well in the past 12 months, both financially and in the stock market. Up almost 400% since my previous bullish article published in June
Rocket Lab: Positive FCF May Come Sooner Than You Think
Summary
- Up almost 400% since my previous bullish article published in June 2024, RKLB has handsomely rewarded investors who bet on the company's disruptive potential.
- The Q1 earnings print was decent, but it was evident that the company is forced to incur substantial capital expenditures as we inch closer to Neutron's test flight.
- An analysis of the global small payload launch services market reveals Rocket Lab is enjoying certain competitive advantages. The company is now expanding into new end markets and geographies.
- After updating my earnings model, I found that Rocket Lab is likely to generate a breakeven level of FCF next year.
Dilantha De Silva is an experienced equity analyst and investment researcher with over 10 years in the investment industry. He writes insightful articles for Seeking Alpha, GuruFocus, TipRanks, and ValueWalk, with a significant following on Seeking Alpha. Dilantha’s expertise spans across various sectors, with a particular focus on small-cap stocks that are overlooked by Wall Street analysts. He is a CFA Level III candidate and an Associate Member of the Chartered Institute for Securities and Investment (CISI). Dilantha has been featured on CNBC and Bloomberg, and his work has been prominently showcased on Nasdaq, Yahoo Finance, and other leading investment platforms. When not analyzing stocks and writing, Dilantha is involved in private equity transactions, including acquiring and managing businesses.
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.
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