Gil Rotstein 527 Followers

Summary

Rocket Lab remains a Hold at about $66: the post-Iridium company looks fairly valued, with no margin of safety for another Neutron delay.

The Iridium deal consumes roughly $2.9 billion in cash and adds about $2.16 billion of debt, shrinking the cushion that lets Rocket Lab wait for Neutron.

Q3 growth and positive operating cash flow hide rising costs and lumpy milestone payments; the core business still depends on Neutron to become profitable.

At roughly 30x 2027 core sales, the stock already prices in Neutron’s $70 million pricing and 16 booked missions.

denisik11/iStock via Getty Images

Rocket Lab (RKLB) had another strong quarter, and the market loved it.

Most investors still see it as a growth company with net cash, one that can wait for Neutron without any pressure.

But in

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