Bank of America raised its price objective on Rocket Lab (RKLB) to $115 from $105. The bank maintained its buy rating on the shares. This new target suggests a potential upside of approximately 19.7% from the current trading price.
The upgrade follows Rocket Lab's agreement to acquire satellite communications company Iridium. BofA views the acquisition as a strategic entry into commercial, government, and defense services markets. Updated financial estimates also factor in higher launch sale prices for the company's Electron rocket.