New Rocket Lab Price Target After Latest Contract Announcement
The aerospace firm continues to beat our price targets.
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Here are two updates from last week:
Churchill Capital Corp X/Infleqtion
This is the SPAC deal that I wrote to you about last Tuesday.
To refresh: Infleqtion is the global quantum tech company I told you about, which is involved in the design and manufacture of neutral-atom-based quantum computers and quantum software for governments, businesses and research institutions. The firm was formerly known as ColdQuanta and uses a scalable and versatile form of quantum computing that is already being used and experimented with by firms like Nvidia (NVDA) , NASA and the U.S. Department of War.
Back in early September, Infleqtion announced that the firm had agreed to go public via the SPAC known as Churchill Capital Corp X (CCIX). This deal is expected to inject Infleqtion with $540 million in cash which will include $125 million in incremental financing via an investment by private equity. This deal would value the firm at about $1.8 billion. Once the deal is done, the firm will operate under the name Infleqtion and is expected to list under the symbol INFQ at one of the two major New York-based stock exchanges.
There is no technical pattern present. That makes it difficult to place a target price on these shares. That said, the stock, still CCCX, is already up 24.1% since I brought it to your attention. Hopefully some of you jumped in with me. Regardless, I don't know if this peters out or goes up much, much more.
However, without a legit target price, I have to take something off up 34% (I'm actually up more, but that's when I wrote about it). I am still in my other quantum names as well. Without a true target, I buy the dips and sell the rips. This is just risk management.
Rocket Lab
Again? Yes, again. I can't help it. This stock keeps hitting my target prices. That's a good problem to have.
On Friday, Rocket Lab (RKLB) announced a new contract with the Japan Aerospace Exploration Agency to launch two new satellites from the company's facilities in New Zealand. That came just days after the multi-launch deal signed with Q-shu Pioneers of Space. The stock gave up 3.25% with the market but is now up 6.8% overnight and had traded with a $69 handle. That was our new target price, just last Wednesday, which was a Wall Street high. Guess we beat the "pros" — and I use that term very loosely — yet again. It helps actually having skin in the game, which is something that sell-side analysts cannot do.
The technical picture has not changed. The company is reporting as soon as the first week of November. Yes, we are taking a little something off of the position as doing so at targets met is one of our core disciplines. We just have to remember to put those shares back where they belong when the inevitable sell-off does finally show up and stick. My pivot has not changed, but I do have to get my target out of the way. I really do not want to take any more off until I get to add after this sale and do so at some kind of discount.
Target Price: $74 (up from $69, still the high on Wall Street)
Pivot: $53 (created by the bull flag)
Add: Down to the 50-day SMA (currently $48)
Panic: Loss of the 200-day SMA (currently $32)
Note: Kristine Liwag (five stars at TipRanks) of Morgan Stanley raised her target price to $68 from $20 for RKLB on Monday morning. Finally, a worthy opponent? Maybe, but she's probably just being forced to admit that she's been wrong for a long time as the stock was trading almost $50 above her target.
At the time of publication, Guilfoyle was long CCCX, NVDA and RKLB equity.
