TLDR
- Rocket Lab stock jumped 6% Wednesday, closing at a new all-time high of $91.80
- Company secured largest-ever contract worth $816 million for defense satellites
- Analyst maintains Buy rating, citing Rocket Lab as top SpaceX competitor
- First Neutron rocket launch targeted for first half of 2026
- Shares have climbed 250% over the past 12 months
Rocket Lab posted a 6% gain Wednesday, with shares reaching an all-time high of $91.80. The space launch company rode a broader rally in satellite stocks.
Rising geopolitical tensions helped lift the entire sector. Planet Labs and EchoStar both gained approximately 6% during the same trading session.
Cantor Fitzgerald analyst Andres Sheppard kept his Buy rating on the stock. He described Rocket Lab as the best commercial alternative to SpaceX in today’s launch market.
The company’s $816 million deal with the U.S. Space Development Agency represents its biggest contract to date. Under the agreement, Rocket Lab will build 18 satellites for missile-warning, tracking, and defense missions in low Earth orbit.
Defense Deal Transforms Company Outlook
The Space Development Agency contract doubled Rocket Lab’s total backlog. This win demonstrates the company’s expanding capabilities beyond traditional launch services.
Rocket Lab finished fiscal 2025 with 21 Electron launches, setting a new annual record. The company has now completed 79 successful missions, ranking third globally among launch providers and second in the U.S. after SpaceX.
Recent financial results showed strong momentum. Revenue climbed 48% year-over-year, while the company posted an EPS of -$0.03, beating the -$0.05 consensus estimate.
Sheppard highlighted Rocket Lab’s strong execution and growing backlog. He sees the company transitioning from a pure launch provider to a comprehensive space infrastructure business.
Neutron Development Takes Priority
The analyst identified the Neutron launch as the most important upcoming catalyst. The medium-lift, reusable rocket is scheduled for its first flight in the first half of 2026.
Management expects Neutron to reach the launchpad during Q1 2026. A successful debut would position Rocket Lab as the only credible commercial rival to SpaceX’s Falcon 9.
Neutron could dramatically improve Rocket Lab’s unit economics. The reusable design aims to lower launch costs while increasing payload capacity.
Sheppard acknowledged several risks facing the company. Potential Neutron delays, regulatory challenges, and supply-chain disruptions remain concerns for investors.
Despite these headwinds, the analyst expressed confidence in Rocket Lab’s track record. The company has demonstrated consistent execution across its launch operations.
Wall Street analysts maintain mixed views on valuation. The consensus price target sits at $61.25, implying over 20% downside from current levels. However, recent upgrades from KeyCorp, Baird, and Bank of America suggest growing confidence.
Insider activity shows executives taking profits. Company insiders sold roughly 4.2 million shares worth approximately $262 million during the past three months. CFO Adam Spice accounted for a large portion, selling 1.365 million shares valued at about $103 million.
The stock pulled back 2% in after-hours trading following Wednesday’s record close. Shares have still gained more than 250% over the trailing 12-month period.
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