Rocket Lab USA: What's Next after Recent Swings

One could say Rocket Lab USA (RKLB) stock lived up to its name earlier this month. The space launch and satellite manufacturing company saw its shares zoom from around $10, Read More... The post Rocket Lab USA: What's Next after Recent Swings appeared first on TipRanks Financial Blog.

Rocket Lab USA: What's Next after Recent Swings

One could say Rocket Lab USA () stock lived up to its name earlier this month. The space launch and satellite manufacturing company saw its shares zoom from around $10, to as much as $21.34 per share, in a matter of days.

The reason? Solid quarterly results, along with news of a major contract win. Following both positive developments however, investors have decided to “sell on the news.”

As a result, the stock has dipped back to around $15.50 per share. So, following its pullback, is now the time to buy? (See RKLB stock charts on TipRanks)

I’m staying bearish until it moves back to lower price levels.

Analysts, Investors Excited about RKLB Stock

Even with recent profit-taking, retail excitement remains elevated with Rocket Lab USA shares. That’s clear from the high level of discussion about it on platforms like Reddit’s r/WallStreetBets.

Make no mistake however, there’s more on the side of RKLB stock than just “meme stock” popularity. The sell-side in general has shown enthusiasm for it as well. For example, Edison Yu of Deutsche Bank recently gave shares a Buy rating, and a $18 price target.

The rationale for his bullishness? Yu sees it as the “highest quality” name among the space stocks that have recently gone public.

The other analyst to give it a Buy rating, Canaccord’s Austin Moeller, is even more bullish. Giving it a $30 per share price target, Moeller believes it’s second only to Elon Musk’s SpaceX among commercial space launch operators.

Yet despite the bullishness surrounding it, buying in today may not be the way to go. Mainly, because of the high likelihood shares fall further in price, before they climb back to recent highs, and beyond.

Reasons for Concern

RKLB stock may have a lot in its corner long-term. But two near-term factors may mean more declines lie ahead. 

First, an upcoming lockup expiration. Yu himself mentioned this as a key concern in his research note. Once details about planned selling by private investors in this former SPAC (special purpose acquisition company) become known later this month (via an S-1 filing), investors could react negatively, sending shares lower even before the lockup ends.

Second, the stock’s premium valuation. Its 2021 projected revenue of between $50 million and $54 million hardly justifies this stock’s current trading levels.

Granted, with the high-growth projections laid out in its investor presentation, it makes sense why investors have been willing to pay up for it. Demand growth for both its launch and satellite businesses could mean its top line soars more than 29-fold over the next six years, to $1.57 billion.

Yet that may not be enough to counter factors like Federal Reserve tapering, and possible interest rate increases, which could lower the appeal of growth stocks in the months ahead.

Downward pressure from either of these two issues could send shares back to their SPAC offering price ($10 per share). Or perhaps, even lower.

What Analysts are Saying about RKLB Stock

According to TipRanks, RKLB stock has a consensus rating of Moderate Buy. Out of three analyst ratings, two rate it a Buy, while one analyst rates it a Hold.

The average RKLB price target is $22 per share, implying 48.6% upside from today’s prices. Analyst price targets range from a low of $18 per share, to a high of $30 per share.

Bottom Line

Until SpaceX goes public, Rocket Lab USA may be one of the best options for investors looking for exposure to the fast-growing space sector.

However as traders take profit, concerns continue to mount regarding upcoming insider selling, and possible downward pressure on growth stocks overall.

The best move for investors may be to sit things out, until RKLB stock makes a further descent back to earth.

Disclosure: At the time of publication, Thomas Niel did not have a position in any of the securities mentioned in this article.

​Disclaimer: The information contained in this article represents the views and opinion of the writer only, and not the views or opinion of Tipranks or its affiliates, and should be considered for informational purposes only. Tipranks makes no warranties about the completeness, accuracy or reliability of such information. Nothing in this article should be taken as a recommendation or solicitation to purchase or sell securities. Nothing in the article constitutes legal, professional, investment and/or financial advice and/or takes into account the specific needs and/or requirements of an individual, nor does any information in the article constitute a comprehensive or complete statement of the matters or subject discussed therein. Tipranks and its affiliates disclaim all liability or responsibility with respect to the content of the article, and any action taken upon the information in the article is at your own and sole risk. The link to this article does not constitute an endorsement or recommendation by Tipranks or its affiliates. Past performance is not indicative of future results, prices or performance.

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Synlogic (SYBX) Received its Third Buy in a Row

After H.C. Wainwright and Piper Sandler gave Synlogic (NASDAQ: SYBX) a Buy rating last month, the company received another Buy, this time from Chardan Capital. Analyst Keay Nakae reiterated a Buy rating on Synlogic today and set a price target of $10.00. The company's shares closed last Monday at $3.71. According to TipRanks.com, Nakae is a 5-star analyst with an average return of 21.4% and a 48.0% success rate. Nakae covers the Healthcare sector, focusing on stocks such as Arrowhead Pharmaceuticals, Emergent Biosolutions, and Kaleido Biosciences. Currently, the analyst consensus on Synlogic is a Strong Buy with an average price target of $10.75, implying a 205.4% upside from current levels. In a report issued on September 7, H.C. Wainwright also reiterated a Buy rating on the stock with a $9.00 price target. See today’s analyst top recommended stocks >> Based on Synlogic's latest earnings release for the quarter ending June 30, the company reported a quarterly revenue of $246K and GAAP net loss of $14.49 million. In comparison, last year the company earned revenue of $445K and had a GAAP net loss of $15.54 million. TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities. Synlogic, Inc. is a clinical-stage biopharmaceutical company, which engages in drug discovery and development of synthetic biotic medicines. It focuses on SYNB1020 and SYNB1618, which are orally administered and target hyperammonemia and phenylketonuria. It also works on SYNB1891, an intratumorally administered which treats cancer. The company was founded by Jim Collins and Tim Lu on August 28, 2017, and is headquartered in Cambridge, MA. Read More on SYBX: Scorpio Tankers: Solid Future Catalysts in Place Brookline Capital Markets Thinks Syros Pharmaceuticals’ Stock is Going to Recover Keysight Technologies: A Bright Future Ahead Can Lucid Stock Clear Up? This Is What You Need to Know Restaurant Brands International: An Industry Underdog to Watch The post Synlogic (SYBX) Received its Third Buy in a Row appeared first on TipRanks Financial Blog.

After H.C. Wainwright and Piper Sandler gave Synlogic (NASDAQ: SYBX) a Buy rating last month, the company received another Buy, this time from Chardan Capital. Analyst Keay Nakae reiterated a Buy rating on Synlogic today and set a price target of $10.00. The company's shares closed last Monday at $3.71.

According to TipRanks.com, Nakae is a 5-star analyst with an average return of 21.4% and a 48.0% success rate. Nakae covers the Healthcare sector, focusing on stocks such as Arrowhead Pharmaceuticals, Emergent Biosolutions, and Kaleido Biosciences.

Currently, the analyst consensus on Synlogic is a Strong Buy with an average price target of $10.75, implying a 205.4% upside from current levels. In a report issued on September 7, H.C. Wainwright also reiterated a Buy rating on the stock with a $9.00 price target.

Based on Synlogic's latest earnings release for the quarter ending June 30, the company reported a quarterly revenue of $246K and GAAP net loss of $14.49 million. In comparison, last year the company earned revenue of $445K and had a GAAP net loss of $15.54 million.

TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.

Synlogic, Inc. is a clinical-stage biopharmaceutical company, which engages in drug discovery and development of synthetic biotic medicines. It focuses on SYNB1020 and SYNB1618, which are orally administered and target hyperammonemia and phenylketonuria. It also works on SYNB1891, an intratumorally administered which treats cancer. The company was founded by Jim Collins and Tim Lu on August 28, 2017, and is headquartered in Cambridge, MA.

Read More on SYBX:

  • Scorpio Tankers: Solid Future Catalysts in Place
  • Brookline Capital Markets Thinks Syros Pharmaceuticals’ Stock is Going to Recover
  • Keysight Technologies: A Bright Future Ahead
  • Can Lucid Stock Clear Up? This Is What You Need to Know
  • Restaurant Brands International: An Industry Underdog to Watch

The post Synlogic (SYBX) Received its Third Buy in a Row appeared first on TipRanks Financial Blog.

Source : Tip Ranks More   

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