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On Friday, Citi analysts reiterated their Buy rating on Rocket Lab USA (NASDAQ:RKLB) with a steadfast price target of $33.00, representing significant upside potential from the current price of $18.42. According to InvestingPro data, the stock has shown remarkable momentum with a 348% return over the past year, though it currently trades above its Fair Value. This endorsement follows Rocket Lab’s recent announcement that it has been selected to compete for forthcoming National Security Space Launches. The Space Force disclosed its intention to distribute 30 Indefinite Delivery/Indefinite Quantity (IDIQ) task orders, with a cumulative value exceeding $5 billion, intended for launching national security assets up to the year 2030. For Rocket Lab, with its current market capitalization of $8.35 billion and impressive revenue growth of 78% year-over-year, this opportunity could significantly boost its growth trajectory.
Rocket Lab’s eligibility to vie for these task orders is contingent upon a successful launch of its Neutron vehicle. The company’s inclusion in this competitive process occurred sooner than Citi analysts had anticipated, originally forecasting the event to align with or follow the vehicle’s maiden launch, which is currently scheduled for the second half of 2025.
In the wake of this development, Rocket Lab projects the availability of three Neutron rockets in 2026, with an additional five slated for 2027. This projection positions the Space Force as a potentially significant client for Rocket Lab in the coming years. Citi analysts suggest that Rocket Lab’s stock is likely to experience a positive response on Friday due to the perceived reduction in risk associated with this award. Given the stock’s high volatility (Beta 2.07), investors seeking deeper insights can access comprehensive analysis and 13 additional ProTips through InvestingPro’s detailed research reports.
In other recent news, Rocket Lab USA, Inc. has been awarded a significant National Security Space contract alongside Stoke Space Technologies. The contract, valued at up to $5.6 billion, involves delivering payloads into orbit and extends through June 2029, with an optional five-year extension. Rocket Lab has also successfully launched eight satellites for OroraTech, enhancing global wildfire monitoring capabilities. This mission demonstrates Rocket Lab’s ability to rapidly deploy satellites, meeting urgent requirements within four months of contract signing. Additionally, Cantor Fitzgerald reiterated its Overweight rating on Rocket Lab, maintaining a price target of $24, citing progress on the Neutron Rocket development. Rocket Lab aims to complete the Neutron Rocket by March 2025, with commercial launches anticipated in the following years. The company also announced plans to acquire a majority stake in Mynaric (ETR:M0YNn) for $75 million, potentially funded through a $500 million at-the-market equity offering. This acquisition aligns with Rocket Lab’s growth objectives and could enhance its capabilities in aerospace and defense.
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