Rocket Lab (RKLB -4.39%) 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.
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.
I think it’s mostly the second. Here’s a closer look at why.
Image source: Getty Images.
The deal that changed the math
The stock had already pulled back from its May peak when, on June 29, Rocket Lab announced an agreement to…
