Space firm Rocket Lab's RKLB.O shares rise 1.2% to $62.73 premarket.
Raymond James initiates coverage with an "outperform" rating and sets a price target of $80, implying upside of 29.1% to the stock's last close.
The brokerage says RKLB will get a $3 bln-plus deployed constellation and about $300 mln of free cash flow from its $8 bln acquisition of Iridium IRDM.O, which can help the Neutron rocket's scaling.
"Upon closing Iridium, Rocket Lab will be the only vertically integrated space company with positive FCF and partnership led strategy that enables FCF to compound at a time when investment intensity declines" - Raymond James.
The average rating of 21 analysts is "buy;" their median PT is $120 - data compiled by LSEG.
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