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On Friday, Cantor Fitzgerald analyst Andres Sheppard increased the price target on Rocket Lab USA (NASDAQ:RKLB) shares to $29.00, up from the previous target of $24.00, while maintaining an Overweight rating on the stock. The company’s shares, currently trading at $20.36, have delivered an impressive 442% return over the past year, according to InvestingPro data. With analyst targets ranging from $14.35 to $33.00, the stock has shown significant momentum, though it typically trades with high volatility.
Sheppard’s updated valuation follows Rocket Lab’s confirmation during its first-quarter 2025 earnings call that the company is on schedule with the development of its Neutron rocket. Rocket Lab outlined a series of milestones that must be completed before the Neutron’s inaugural launch, anticipated in the second half of 2025. These steps include vehicle integration, static fires of the first and second stages, and a wet dress rehearsal. The company, now valued at $9.36 billion, has demonstrated strong revenue growth of 65% in the last twelve months.
Rocket Lab has set ambitious goals for Neutron, its new reusable-ready medium-lift rocket. The company has planned a total of nine Neutron launches through 2027, with the first expected in the fourth quarter of 2025, although it is not projected to generate revenue. The schedule includes one launch in 2025, three launches in 2026, and five launches in 2027. Neutron is designed to achieve a minimum reusable target of "up to 20 launches per engine," according to company statements.
Additionally, Rocket Lab disclosed during the earnings call that Neutron has been selected to be part of the U.S. Space Force’s National Security Space Launch (NSSL) program. This selection comes as part of a $5.6 billion firm-fixed-price Indefinite Delivery/Indefinite Quantity (IDIQ) contract that extends through 2029. Rocket Lab is now one of five companies chosen to support the Department of Defense’s highest priority missions, and it is the only publicly-traded entity among them. For detailed analysis of Rocket Lab’s financial health and growth prospects, including 12 additional exclusive ProTips, visit InvestingPro, where you’ll find comprehensive research reports and expert insights.
In other recent news, Rocket Lab USA reported its financial results for the first quarter of 2025, revealing a revenue of $122.6 million, which surpassed expectations and marked a 32.1% increase year-over-year. However, the company’s earnings per share (EPS) showed a loss of $0.12, missing the forecasted loss of $0.10. Despite this, the company’s adjusted EBITDA loss was $30 million, which was better than the guidance. Rocket Lab’s two main segments, Launch Services and Space Systems, contributed significantly to the revenue growth, with the company maintaining a strong backlog of $1.067 billion. In addition, Stifel analysts have raised their price target for Rocket Lab stock from $27.00 to $29.00, maintaining a Buy rating, citing the company’s solid performance and future growth prospects. The company also announced its guidance for the second quarter of 2025, projecting revenue between $130 million and $140 million. Furthermore, Rocket Lab’s pending acquisition of Mynaric (ETR:M0YNn), a company specializing in laser communication technologies, is expected to enhance its service offerings. These developments indicate a strategic focus on expanding market presence and operational efficiency.
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