TLDR
- Rocket Lab (RKLB) stock fell as much as 11% Thursday after Neutron’s first flight moved to 2027.
- CEO Peter Beck blamed production errors that the company says it has fixed.
- KeyBanc kept its Buy rating but cut its price target to $100 from $135.
- The stock is down more than 20% this year and nearly 70% below its May record.
- Wall Street has a Strong Buy consensus with an average price target of $100.25.
Rocket Lab (RKLB) stock fell as much as 11% on Thursday after the company said Neutron will not make its first flight until 2027. Another report had the stock down about 7% on the day.
The drop followed a presentation by CEO Peter Beck on Wednesday. He said the company is weighing speed against long-term reliability.
“We’re balancing speed to first launch with bringing a reliable, high cadence rocket to market for the long term,” Beck said. He added that this calls for deliberate choices on timelines.
Beck said Rocket Lab found errors in its production process. Fixing them has taken time.
Why Neutron Slipped Again
Neutron was first due to fly last year. Rocket Lab calls it the world’s largest carbon composite rocket.
KeyBanc analyst Michael Leshock said the issue was manufacturing defects in the stage one propellant domes. The problem is fixed, but the review pushed the schedule back.
Rocket Lab plans to finish two key production and testing steps this year. A third is due in the first quarter of 2027.
Once those are done, Beck said the company will be in “good shape” to set a new launch date. For now, there is no date.
Leshock called the delay largely expected. Management had already hinted that the year-end window was getting tight.
What Analysts Are Saying
KeyBanc kept its Buy rating on Rocket Lab. It cut its price target to $100 from $135.
The firm pointed to the new Neutron timeline and lower valuations across high-growth space stocks. Leshock said the pullback gives long-term investors a chance to step in.
He now expects the first launch in the second quarter of 2027. The first quarter is still possible if execution goes well.
Leshock left his 2026 estimates alone. He trimmed his 2027 revenue estimate by about $53 million to reflect one fewer Neutron launch.
His Space Systems estimates did not change. He still calls Rocket Lab a top beneficiary of the growing space economy.
The stock is down more than 20% this year and nearly 70% below its May record. That is a long fall for a name that was a market favorite not long ago.
TipRanks shows a Strong Buy consensus, with 15 Buy ratings and three Holds. The average price target is $100.25, which implies about 82% upside.
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