Rocket Lab Secures Major Defense Contract and Stock Upgrade, Shares Surge 6%
Rocket Lab (RKLB) shares jumped 6% following a significant contract win and an analyst upgrade. The company landed an $816 million deal with the Space Development Agency to build 18 satellites equipped with missile tracking sensors, marking its largest single award to date. This positions Rocket Lab as a prime contractor for future defense projects, including the Golden Dome program.
Morgan Stanley upgraded the stock to overweight, raising its price target to $105 from $67, citing favorable industry trends extending into 2026. The firm highlighted Rocket Lab's successful Electron launches and progress on its Neutron vehicle as key growth drivers.
While bullish on long-term prospects, some analysts noted elevated valuations and insider selling could temper short-term gains. The space sector continues to show robust growth, with Rocket Lab emerging as a key player in both government and commercial markets.
