Rocket Lab Has Fallen 58% From Its High While Wall Street's Average Target Sits 79% Above the Price. One Side Is Badly Wrong.
The market and the analysts covering this launch company are about $50 per share apart. The deal it signed in late June explains most of the gap.
Overview
Rocket Lab (NASDAQ: RKLB) closed Friday at $63.91, down 8.7% in a single session and about 58% below its 52-week high of $151.
Wall Street, on paper, remains far more bullish. The average price target across the 17 analysts covering the stock sits at $114.33 -- about 79% above the share price.
Details
A gap that wide doesn't leave much room for both sides to be reasonable. Either the market has badly mispriced a fast-growing space company, or the targets are pricing a different company than the one the deal created.
Source
Originally published at www.fool.com.
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