Stifel maintains buy rating on Rocket Lab stock amid Neutron progress

Published 04/06/2025, 14:36
Stifel maintains buy rating on Rocket Lab stock amid Neutron progress

On Wednesday, Stifel analysts reiterated a Buy rating for Rocket Lab USA (NASDAQ: RKLB) stock, maintaining a price target of $34.00. Trading at $27.42 with a market capitalization of $12.4 billion, the stock currently sits above its InvestingPro Fair Value estimate. The reaffirmation comes after the company’s participation in the Stifel 2025 Cross Sector 1x1 Conference, where key executives discussed ongoing projects and strategic acquisitions.

Stephen Ananias, VP of Finance, and Brian Nugent, VP of Corporate FP&A, addressed inquiries about Rocket Lab’s Neutron development program. The company is focusing on getting the Neutron vehicle ready for launch in the second half of 2025. This program is seen as crucial for Rocket Lab’s ambition to become a fully integrated space company.

During the conference, management also discussed recent acquisitions, including Mynaric (ETR:M0YNn) and Geost. These deals are intended to enhance Rocket Lab’s technological capabilities and secure essential suppliers for the Space Development Agency (SDA) and other government entities. The acquisitions are aimed at strengthening Rocket Lab’s position as a disruptive prime contractor in U.S. national security missions.

Stifel analysts highlighted Rocket Lab’s comprehensive approach, which includes launch services with vehicles like Electron and HASTE, spacecraft manufacturing, and payload capabilities. The firm believes Rocket Lab is well-positioned within the growing space economy.

Rocket Lab’s strategy and developments continue to attract attention as the company advances its various programs and strengthens its role in the space sector. The stock has demonstrated remarkable performance, delivering a 524% return over the past year. For deeper insights into Rocket Lab’s financial health and growth prospects, including 12+ additional ProTips, check out the comprehensive research report available on InvestingPro.

In other recent news, Rocket Lab USA has announced its plan to acquire Geost LLC for $275 million, a move that marks the company’s entry into the satellite payload sector. This acquisition includes $125 million in cash and $150 million in Rocket Lab shares, with an additional potential earnout of $50 million. Analysts from KeyBanc, Needham, and Stifel have responded positively to this development, with KeyBanc raising its price target to $29, Needham to $32, and Stifel to $34, all maintaining strong ratings on the stock. The acquisition is expected to have a neutral to slightly positive impact on Rocket Lab’s adjusted EBITDA in the latter half of 2025.

Rocket Lab’s strategic expansion into the payload market is seen as a significant step, with Geost’s expertise in electro-optical and infrared payloads potentially enhancing Rocket Lab’s offerings in the national security space sector. The acquisition aligns with Rocket Lab’s ongoing efforts to vertically integrate and expand its capabilities, particularly in the defense sector. The deal is subject to regulatory approval and is expected to be finalized early in the second half of 2025. Analysts have expressed confidence in Rocket Lab’s growth trajectory, highlighting the company’s potential to secure additional government contracts and its strategic positioning in the space technology industry.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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