Rocket Lab USA, Inc. (RKLB) shares plummeted 5.08% during Thursday's intraday trading session, following new analyst coverage from Piper Sandler.

The brokerage initiated coverage on Rocket Lab with a "Neutral" rating and set a price target of $83. In its analysis, Piper Sandler noted that while vertically integrated rocket makers like Rocket Lab have cost advantages and are well-positioned over a multi-year period, "over a one-year time horizon, it's hard to argue that RKLB is 'cheap'".

The neutral initiation comes as the space sector faces increased scrutiny from investors, with Piper Sandler also covering other space-linked firms including SpaceX and AST SpaceMobile. The brokerage's assessment that Rocket Lab shares may not represent compelling value in the near term appears to have contributed to the stock's downward pressure during the trading session.