Rocket Lab (NASDAQ: RKLB) stock has taken investors on a wild ride this week, slumping on Tuesday's news that the rocket maker had missed Wall Street's sales target in the first quarter, then recovering on Wednesday.

Investors might have felt encouraged that Morgan Stanley analyst Kristine Liwag, in a note on StreetInsider, lowered her price target on Rocket Lab stock to $8 a share. Why would investors think a lowered price target is good news? Simply because $8 is roughly twice Rocket Lab's current price. Translation: Rocket Lab stock could double, and is still a buy.

I have to admit: I'm a bit skeptical. On Wednesday, I argued another banker's price target of less than $6 a share might pan out, and Rocket Lab could rise 40%, if the company succeeds in earning a profit in 2026 as it's expected to. But $8 a share? More than twice the current price?

Continue reading

Source Fool.com