Why Shares of Rocket Lab Lifted Off Today

For the past week, the closing price of Rocket Lab stocks (RKLB) has consistently risen above the previous day’s close. This upward trend seems to persist today. With a favorable forecast from analysts for Rocket Lab shares, investors are actively purchasing this launch service provider.

As of 2:06 p.m. ET, shares of Rocket Lab are up 10.6%.

Development of a new rocket has this analyst optimistic

Bank of America raised its rating on Rocket Lab stock while increasing the price target from $30 to $50, according to The Fly. This optimistic perspective about the space stock stems from the promising outlook for the Neutron rocket and Rocket Lab’s strong position in satellite development. These factors will enable the company to offer a broader range of services to its customers. Unlike the current Electron rocket, the Neutron rocket has the capacity to carry larger payloads, and Rocket Lab management views it as a significant driver for growth in the future.

Beginning in March, Rocket Lab revealed that the United States Space Force has selected the Neutron rocket to vie for contracts from the National Security Space Launch program. This program offers contracts over a five-year period ending in June 2029, with a potential value of $5.6 billion at its maximum.

Rocket Lab expects the first launch of Neutron to occur in the second half of 2025.

What’s a potential Rocket Lab investor to do now?

For individuals considering an investment in Rocket Lab, it’s crucial to keep in mind that analysts typically have shorter investment timeframes compared to the long-term investment preferences of many investors. Therefore, a higher price target may not hold much significance. Instead, focusing on the company’s substantial backlog and advancements with the Neutron program could offer more tangible factors that might justify an investment decision.

Absolutely, given that Rocket Lab is currently operating at a loss, it’s primarily appealing to investors who prefer a more risky, speculative approach. However, for those seeking alternatives, there are other space-related stocks available in the market that might be more suitable.

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2025-07-17 23:06