Citigroup calls RKLB a “buy” and set its price target to $6
Citigroup reinstated coverage of Rocket Lab USA Inc (NASDAQ:RKLB) with a “buy” rating and $6 price target, with the analyst in coverage noting its $515 million award from the Space Development Agency. At last glance, the security is up 8.1% to trade at $4.69.
RKLB slipped into chip stock territory back in January, but has been in rally mode since its pullback to $3.89 — its lowest level since May. The shares are today poised to conquer the 100-day moving average, as they eye their sixth-straight daily win and best day since Dec. 22.
Options bulls are frenzied today, with 5,734 calls — six times the intraday average — compared to only 392 puts. The most popular contract by far is the February 4 call.
This denotes a shift in sentiment, as short-term options traders lean bearish. This is per Rocket Lab USA stock’s Schaeffer’s put/call open interest ratio (SOIR) which sits at the top of annual readings.
The security also looks ripe for a short squeeze. Short interest rose 10% over the last two reporting periods, and the 23.10 million shares sold short make up 6% of RKLB’s available float.