Rocket Lab USA, Inc. (NASDAQ: RKLB) is trading more than 55% below its year-to-date high, but several analysts are drawing attention to the company’s growing backlog, expanding revenue, and position across the space industry.

Raymond James analyst Brian Gesuale initiated coverage of RKLB on September 11 with an “Outperform” rating and an $80 price target. That target represented more than 25% upside from the stock’s trading level when the note was issued.

Gesuale’s investment case is based on the view that Rocket Lab is more than a launch provider. The company has developed an end-to-end mission capability that includes components, software, and satellite platforms for civil, commercial, and national security missions.

According to the analyst, Rocket Lab’s combination of launch services and space systems provides two revenue streams and creates recurring revenue that pure-play launch competitors do not have. He also said the market may be undervaluing the company’s longer-term earnings potential as defense and scientific contracts expand.

Backlog and Revenue Growth

Rocket Lab finished its most recently reported quarter with a backlog of $2.36 billion, an increase of 137% from the same period a year earlier. Quarterly revenue reached $234.1 million, up 62% year over year. The company also reported a cash reserve of more than $2 billion.

Raymond James cited the backlog, revenue growth, and cash position as indicators that the market may not be fully reflecting Rocket Lab’s potential for longer-term earnings leverage. The size of the backlog also provides visibility into future work for a company at this stage of its development. The company’s subsequent results and launch activity will help show how that contracted work develops alongside reported revenue.

Rocket Lab recently completed its 95th Electron launch, deploying an Earth-observation satellite into a 500-kilometer orbit. It was the company’s 16th launch of the year. Another commercial launch was planned before the end of September.

Institutional Purchases and Insider Sales

Institutional investors have also increased their exposure to RKLB. Virginia Retirement Systems acquired 10,539 shares during the second quarter, valued at approximately $1.07 million. BlackRock established a new position valued at about $4.1 billion, while Bank of America added a new stake worth roughly $437 million. Institutions now own 71.78% of the company’s stock.

Insider selling remains a concern. During the past 90 days, insiders sold more than $312 million worth of shares across 97 reported transactions, with no purchases recorded. Chief Executive Officer Peter Beck was among the sellers.

Some of the transactions were carried out under pre-arranged Rule 10b5-1 plans and were connected to tax obligations resulting from the vesting of equity awards. Nevertheless, the overall volume of insider sales remains notable.

Raymond James is not the only firm with a positive view of the company. Berenberg Bank began coverage on September 2 with a “Buy” rating and an $83 price target. Citizens JMP has a $130 target. Across analysts, the consensus rating is “Moderate Buy,” with a mean price target of $107.32.

Weiss Ratings maintains a “Sell” rating, while Piper Sandler has a “Neutral” rating and an $83 target. The current analyst breakdown consists of four “Strong Buy” ratings, fourteen “Buy” ratings, five “Hold” ratings, and one “Sell.”