Shares of Rocket Lab USA, Inc. (RKLB) plummeted 5.07% in early trading on Monday, following a new analyst coverage initiation. The space technology company's stock came under pressure after Craig-Hallum initiated coverage with a Hold rating and set a price target of $51.

The Hold rating from Craig-Hallum, while not overtly negative, appears to have disappointed some investors who may have been hoping for a more bullish stance on the space launch and satellite company. This neutral outlook could be interpreted as a sign that the firm sees limited near-term upside potential for Rocket Lab's stock, despite the company's position in the growing commercial space industry.

While the specific reasons behind Craig-Hallum's Hold rating were not immediately available, it's possible that factors such as increasing competition in the small satellite launch market or concerns about the company's profitability trajectory may have influenced the analyst's perspective. As Rocket Lab continues to expand its operations and work towards its goal of making space more accessible, investors will likely keep a close eye on future analyst reports and the company's financial performance to gauge its long-term potential.