More Good Reasons to Own Rocket Lab
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On Monday, $10,000 Portfolio holding Rocket Lab (RKLB) announced it had been onboarded to the United States Space Force’s NITE-STAR or “NSTTC Innovative Technology & Engineering – Space Test and Range” IDIQ contract. This is an advanced space test and training infrastructure with a $981 million contract ceiling. The program will be managed by the U.S. Space Force Space Systems Command.
This contract is intended to support a distributed test and training architecture to help prepare space operators for militarily contested scenarios. The program supports the Space Force mission to build an infrastructure that prepares space operators for contested scenarios and advances space warfighter readiness. As an awardee, Rocket Lab is now eligible to compete for task orders within the program.
Separately, also Monday, Viasat (VSAT) announced it had selected Rocket Lab to build a satellite bus for the U.S. Space Force Space Systems Command under the Protected Tactical SATCOM-Global program. Back on May 22, Viasat was awarded a prime contract to deliver small, maneuverable geosynchronous Earth orbit satellites for the PTS-G constellation. The initial production award, known as Swarm 1, includes manufacturing, integration and test, launch, and on-orbit checkout of the mini-GEO satellite system.
Viasat’s government space team, which is within its Defense and Advanced Technologies segment, will lead this work to advance the PTS-G initial operating capability. Rocket Lab’s job as a subcontractor, will be to deliver a GEO configuration of its Lightning spacecraft platform to host Viasat’s dual-band X/Ka-band payload.
Analyst Erik Rasmussen of Stifel Nicolaus reiterated his “buy” rating on RKLB as well as his $132 price target after the company announced the Viasat news. Rasmussen believes that Rocket Lab will capture a “meaningful share” of Viasat’s $218.8 million Swarm-1 award, offering a potential high eight-figure opportunity.
Rasmussen also believes that Rocket Lab is well positioned for follow-on awards. He is rated at five stars out of five by TipRanks and is one of the very best on Wall Street. He has compiled an 82% success rate over the past two years, while generating an average return of 77.7%.
Additionally, analyst Andres Sheppard of Cantor Fitzgerald reiterated his “buy” rating on RKLB while increasing his price target all the way to $122 from $96. Sheppard is rated at four stars out of five by TipRanks. He has compiled a 45% success rate over the past two years, while generating an average return of 21.7%.
Tuesday’s Intentions
– Purchase 2 shares of RKLB at or close to the last sale of $79.80.
Monday’s Intention vs Actual Trade
– Sell 15 shares of OCUL at or close to the last sale of $11.39.
– Sold 15 shares of OCUL at $10.73.
Other Portfolio News
Ocular Therapeutix
On Monday, analyst William Maughan of Clear Street reiterated his “buy” rating on OCUL as well as his $28 price target. Maughan is rated at 4.5 stars out of five by TipRanks. He has compiled a 51% success rate over the past two years while generating an average return of 20%.
In his accompanying note, Maughan stated that competitor EyePoint (EYPT) reported that the LUGANO study did not meet its primary endpoint. This trial miss potentially diminishes competition for Ocular’s axpaxli in wet age-related macular degeneration. He does note that the trial design between EyePoint and Ocular was different. This makes him somewhat cautious in drawing conclusions.
On Sunday, analyst Lachlan Hanbury-Brown of William Blair reiterated his “buy” rating on OCUL without setting a price target. Hanbury-Brown is rated at one star out of five by TipRanks. He has compiled a 48% success rate over the past two years while generating an average return of just 1%.
On Sunday, analyst Serge Belanger of Needham reiterated his “buy” rating on OCUL as well as his $18 price target. Belanger is rated at five stars out of five by TipRanks. He has compiled a 54% success rate over the past two years, generating an average return of 36.18%.
Smith & Wesson Brands
On Monday, analyst Mark Smith of Lake Street reiterated his “buy” rating on Smith & Wesson (SWBI) as well as his $16.50 price target. Smith is rated at four stars out of five by TipRanks. He has compiled a 48% success rate over the past two years while generating an average return of 7.4%.
Current Positions
Long 300 shares of ALTO at $5.0782. Target Price: $8. Last sale: $4.10.
Long 85 shares of EVLV at $5.8876. Target Price: $8.50. Last sale: $5.50.
Long 100 shares of OCUL at $8.3545. Target Price: $11. Last sale: $10.58.
Short one OCUL $11 Sep 18th call at $1.65, Last sale: $0.80.
Long 275 shares of ONDS at $8.491. Target Price: $14. Last sale: $8.65.
Long 50 shares of PL at $24.4758. Target Price $46. Last sale: $23.68.
Long 8 shares of RKLB at $71.4888. Target Price $101. Last sale: $79.80.
Long 100 shares of SOFI at $15.7153. Target Price: $24. Last sale: $18.08.
Long 50 shares of SWBI at $15.2614. Target Price: $19. Last sale: $14.43.
Long 100 shares of VELO at $12.2986. Target Price: $21. Last sale: $14.92.
Cash: $183.72.
Portfolio Value: $11,086.12, +10.9% from inception on March 24th.
Note to Readers: Sarge is off for the rest of the week. This column will not hit publication again until Monday, August 24.
At the time of publication, Guilfoyle was long ALTO, EVLV, OCUL, ONDS, PL, RKLB, SOFI, SWBI and VELO.
