Stifel maintains Rocket Lab stock Buy rating, $27 target

Published 15/04/2025, 15:14
Stifel maintains Rocket Lab stock Buy rating, $27 target

On Tuesday, Stifel analysts reiterated their Buy rating and $27.00 price target for Rocket Lab USA (NASDAQ:RKLB) stock, which currently trades at $21.56, showing significant momentum with a 441% return over the past year. The endorsement follows Rocket Lab’s recent announcement that its HASTE rocket has been included in two multi-billion dollar programs aimed at advancing hypersonic technology development. These programs are the U.S. Air Force’s $46 billion EWAAC and the UK Ministry of Defense’s $1.3 billion HTCDF, totaling $47.3 billion in combined potential contracts. According to InvestingPro data, analysts maintain a bullish consensus on RKLB, with price targets ranging from $14.35 to $33.00, reflecting the market’s optimistic outlook for this $9.8 billion market cap company.

Rocket Lab intends to use its HASTE launch vehicle to compete for contracts within these programs. Although the specific details of the contracts and the level of participation by other suppliers are currently limited, Stifel views this development as a significant milestone for Rocket Lab’s launch business and its HASTE variant. The firm highlights Rocket Lab’s track record of success with the HASTE vehicle, which has already achieved three successful launches for the U.S. Department of Defense and has demonstrated rapid launch capabilities with two launches from Launch Complex 2 within a span of 21 days.

The inclusion of Rocket Lab’s HASTE rocket in these government programs is seen as an opportunity for the company to secure long-term government contracts that could extend through 2031. This move is also expected to bolster Rocket Lab’s competitive position by broadening its government customer base. According to Stifel, these developments underscore the company’s previous achievements and its capability to meet the demands of government contracts in the aerospace sector.

In other recent news, Rocket Lab USA, Inc. has been actively involved in significant contracts with both the U.S. and U.K. governments to develop hypersonic technologies. The U.S. Air Force selected Rocket Lab for the Enterprise-Wide Agile Acquisition Contract, a $46 billion initiative aimed at rapidly acquiring innovative technologies, which will extend through 2031. Concurrently, the U.K. Ministry of Defence chose Rocket Lab for its Hypersonic Technologies & Capability Development Framework, valued at approximately $1.3 billion. Rocket Lab plans to utilize its Hypersonic Accelerator Suborbital Test Electron (HASTE) launch vehicle for these programs. Analyst Erik Rasmussen from Stifel reiterated a Buy rating for Rocket Lab, citing these developments as key milestones. Meanwhile, Cantor Fitzgerald maintained an Overweight rating and a $24 price target for Rocket Lab, highlighting its strategic positioning and potential growth. The company’s proprietary launchpads and vertical integration are noted as significant advantages. However, Rocket Lab’s stock experienced a slight dip following a proposed budget cut to NASA, which could impact future contracts and opportunities.

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