Options traders believe Rocket Lab (RKLB) shares will regain some of their recent losses after the company reports its fiscal Q3 earnings on Nov. 9. Consensus is for the space infrastructure firm to report a loss of $0.05 per share for its third financial quarter, which would represent a significant deterioration from last year.
Heading into the earnings event, Rocket Lab stock sits nearly 70% below its year-to-date high.
What Options Traders Expect From Rocket Lab Stock
Despite the expected increase in per-share loss from $0.01 last year, the derivatives market believes the downside is already baked into RKLB shares at current levels.
Traders are increasingly favoring calls over puts, with the put-to-call ratio on options contracts expiring Nov. 13 currently set at 0.89x. A reading below 1.00x is typically interpreted as bullish. Barchart’s data also pegs the upper price on those contracts at $52.33, signaling potential for more than a 14% post-earnings rally in the Nasdaq-listed firm.
Rocket Lab is currently trading at about 54x sales. While that still looks rather stretched, it makes RKLB significantly cheaper to own than rival SpaceX (SPCX) at a three-digit valuation multiple.
Cantor Fitzgerald Remains Bullish on RKLB Shares
Heading into the quarterly print, Cantor Fitzgerald analysts maintain Rocket Lab shares at “Buy.” The investment firm currently has a $122 price target on the company, which signals potential upside of a whopping 152% from current levels.
Cantor’s bullish view is rooted in RKLB’s growing position as a diversified space infrastructure company rather than a pure launch provider.
It sees significant long-term value in the company’s expanding space systems business, increasing government and defense opportunities, and the upcoming Neutron rocket program, which could unlock a much larger addressable market.
If management executes on those growth initiatives, experts believe revenue and margin expansion could justify substantial upside in Rocket Lab in the years ahead.
What’s the Consensus Rating on Rocket Lab?
Other Wall Street analysts recommend owning RKLB stock heading into 2027.
The consensus rating on Rocket Lab sits at “Strong Buy” currently, with the mean price objective of about $101 indicating potential for a more than 100% rally from here.
On the date of publication, Wajeeh Khan did not directly have a position in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.