Rocket Lab Stock Surges on Analyst Optimism and Launch Contracts

Rocket Lab USA (RKLB) shares climbed 4.4% midday Monday after Morgan Stanley quadrupled its price target to $68, framing the space company as an early-stage alternative to SpaceX. The bullish outlook follows Rocket Lab's announcement of five new launch contracts with Japanese clients, including the Japan Aerospace Exploration Agency.

The comparison to SpaceX stems from Rocket Lab's evolving capabilities. While its Electron rocket remains smaller than SpaceX's early Falcon 1, the company has notched 70 successful missions. The anticipated debut of its reusable Neutron rocket later this year could narrow the technological gap with SpaceX's Falcon 9 system.

Market enthusiasm reflects growing confidence in Rocket Lab's execution, though notable differences remain. Unlike SpaceX's $10 billion 2015 valuation—driven largely by Starlink's potential—Rocket Lab currently lacks a satellite constellation business. The company's trajectory now hinges on converting its launch manifest into consistent revenue growth.