Key Takeaways
- Rocket Lab (RKLB) shares climbed approximately 2% during pre-market hours on Thursday, recovering from an 11% decline in the previous trading session.
- The aerospace company landed a $190 million Department of Defense contract for 20 hypersonic test missions utilizing its HASTE rocket platform — marking the company’s biggest launch agreement to date.
- This contract forms part of the MACH-TB 2.0 initiative, with Kratos Defense & Security Solutions (KTOS) serving as the lead contractor.
- Rocket Lab’s overall backlog now exceeds $2 billion, with the addition of over 70 launch missions to its schedule.
- Clear Street’s Gregory Pendy launched coverage on the stock with a Buy recommendation and $88 price objective, suggesting potential gains exceeding 25%.
Shares of Rocket Lab (RKLB) rebounded with a 2% gain in pre-market trading Thursday, recovering partially from the previous day’s sharp 11% selloff. The upward momentum came from two significant developments: a landmark government contract and positive analyst initiation.
The aerospace manufacturer revealed it has been awarded a $190 million agreement by the U.S. Department of Defense to conduct 20 hypersonic test missions using its HASTE launch platform. This represents the most substantial individual launch agreement in the company’s operational history.
This agreement is integrated into the MACH-TB 2.0 initiative — formally known as the Multi-Service Advanced Capability Hypersonic Test Bed program — administered through the Naval Surface Warfare Center Crane Division. The initiative aims to accelerate hypersonic flight testing capabilities and advance cutting-edge aerospace technologies for military applications.
Rocket Lab operates within Task Area 1 of this program, where Kratos Defense & Security Solutions (KTOS) serves as the primary contractor. The mission schedule spans four years, with the initial launch anticipated within months following contract finalization.
HASTE, an acronym for Hypersonic Accelerator Suborbital Test Electron, represents a specialized adaptation of Rocket Lab’s Electron launch system engineered specifically for hypersonic applications. The company has conducted HASTE operations for the MACH-TB program since 2023, achieving velocities exceeding Mach 5. Rocket Lab reports maintaining a perfect success record across all HASTE missions performed to date.
CEO Peter Beck described the contract as a “proud moment,” emphasizing the company’s manufacturing capabilities, swift launch frequency, and technological innovation as critical elements in securing the agreement.
Total Backlog Surpasses $2 Billion Milestone
This new agreement propels Rocket Lab’s combined backlog spanning launch services and space systems beyond the $2 billion threshold, while incorporating more than 70 additional missions into its launch pipeline. The company has already secured 28 new launch contracts during Q1 2026, nearly matching the entire volume booked throughout 2025.
This trajectory deserves attention. If sustained, 2026 could emerge as a record-breaking sales year before reaching the midpoint.
Clear Street Launches Coverage with Bullish Outlook
Clear Street analyst Gregory Pendy commenced coverage of RKLB Thursday with a Buy recommendation and an $88 price objective — indicating potential upside exceeding 25% from present trading levels.
Pendy emphasized Rocket Lab’s vertically integrated business structure as a strategic differentiator and identified two primary growth catalysts: the small-payload Electron launch vehicle and the forthcoming medium-lift Neutron rocket.
Neutron, designed with reusability and targeting larger payload capabilities, is currently projected to debut in Q4 2026 following production setbacks. Pendy anticipates this platform will unlock a substantially larger market opportunity with enhanced revenue generation per launch compared to Electron.
He also identified Electron’s launch frequency as a growth accelerator, projecting approximately 52 Electron missions annually by 2030.
Regarding the Space Systems division, Pendy observed that Rocket Lab is increasingly securing prime contractor positions rather than subcontractor roles — a transition that generally delivers improved profit margins and greater operational authority.
The overall Wall Street sentiment on RKLB remains positive. Data from TipRanks shows the stock maintains a Strong Buy consensus rating derived from nine Buy recommendations and four Hold ratings issued over the past three months. The consensus price target stands at $89.36, implying approximately 28.6% upside potential from current price levels.
Rocket Lab has already booked 28 new launch contracts in Q1 2026 alone, nearing its complete 2025 annual total.
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