Deutsche Bank named Rocket Lab a top pick for 2022 on Friday, calling it "the most promising rocket launch company after SpaceX." The firm maintained its buy rating and $18 price target on the stock, which represents a 122% increase from Rocket Lab's share price at Thursday's close. Shares of Rocket Lab have fallen about 30% in the past month, during a recent sharp sell-off among space growth stocks , but Deutsche views the downturn optimistically. "We view the large pullback in the stock as an opportunity for investors to gain long-term exposure to growth in the 'New Space' economy," Deutsche analyst Edison Yu wrote in a note to clients. Deutsche expects Rocket Lab to launch 13 missions this year with its Electron vehicle and generate upward of $200 million in revenue – at least tripling last year's launch revenue. Yu also emphasized Rocket Lab's coming, larger Neutron vehicle as "a fundamentally different rocket than the competition." Neutron is a reusable rocket that Rocket Lab aims to debut by 2024 . It would compete with rockets such as SpaceX's Falcon 9 for delivering payloads to orbit. "We believe it will be successful in the marketplace based on cost/payload analysis, expanding the [total addressable market] by at least 4x to > $5bn," Yu said. Deutsche also sees Rocket Lab's growing space systems division, which manufactures satellite components as "underappreciated both strategically and financially." Yu said Rocket Lab's space systems unit "ultimately will enable the company to capture tremendous value from the 'New Space' ecosystem." – CNBC's Michael Bloom contributed to this report.
The 16th Electron launch in November 2020, when the company recovered the rocket after splashdown for the first time.
Deutsche Bank named Rocket Lab