KeyBanc raises Rocket Lab USA stock price target to $50 on margin strength

Published 08/08/2025, 13:10
KeyBanc raises Rocket Lab USA stock price target to $50 on margin strength

Investing.com - KeyBanc Capital Markets raised its price target on Rocket Lab USA (NASDAQ:RKLB) to $50.00 from $40.00 on Friday, while maintaining an Overweight rating on the space company’s stock. The stock, currently trading at $44.21, has delivered an impressive return of over 826% in the past year, with analyst targets ranging from $20 to $55.

The price target increase follows Rocket Lab’s recent earnings report, with KeyBanc citing stronger margins than previously modeled and increased confidence in the progress of the company’s Neutron rocket development program.

KeyBanc noted that while its timeline for Rocket Lab to reach breakeven free cash flow has been extended by three to six months, this delay stems from increased investment in high-growth opportunities rather than operational concerns.

The firm expressed confidence in Rocket Lab’s strong cash position, which it believes will enable the company to execute on its growth initiatives across launch services, satellite manufacturing, and satellite constellations.

KeyBanc analysts believe Rocket Lab is on track to follow a growth trajectory similar to SpaceX, positioning the company to become an industry leader in multiple space-related business segments. With a market capitalization of $21.2 billion, the company operates with moderate debt levels while maintaining strong momentum in its core business areas.

In other recent news, Rocket Lab USA reported a record revenue of $144.5 million for the second quarter of 2025, surpassing both analyst estimates and company guidance, which ranged from $130 to $140 million. However, the company reported an earnings per share (EPS) loss of $0.13, which was greater than the anticipated loss of $0.09. Cantor Fitzgerald responded to Rocket Lab’s strong quarterly performance by raising its stock price target to $54 from $35, maintaining an Overweight rating. During the quarter, Rocket Lab successfully completed five Electron launches, bringing its total to 69 launches. These developments reflect significant recent achievements for Rocket Lab.

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