Stifel’s Top Analyst Raises Rocket Lab (RKLB) Target After Blowout Q3 Earnings – Space Stock to Watch

Rocket Lab's Q3 earnings just lit up the launchpad—and analysts are scrambling to adjust their targets. Stifel's lead space analyst slapped a bullish price hike on RKLB after the company outperformed expectations. Here's why the market's buzzing.

Thrusters Engaged: Rocket Lab delivered a textbook 'beat-and-raise' quarter, with revenue climbing faster than a Neutron rocket. The space-as-a-service play now looks poised to capitalize on the satellite deployment gold rush.

Orbital Economics: While legacy aerospace firms wrestle with supply chains, Rocket Lab's vertically integrated model keeps margins expanding. (Take notes, Boeing.)

Terminal Velocity? Some skeptics whisper that space stocks trade on Musk-adjacent hype cycles. But with Electron rockets flying weekly and Neutron development ahead of schedule, RKLB might just escape gravity this time.

One hedge fund manager quipped: 'At these valuations, you're either buying a SpaceX feeder or a very expensive fireworks show.' Place your bets.

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For context, Rocket Lab specializes in small satellite launches and spacecraft manufacturing. It’s known for its Electron rocket and Neutron rockets. The company reported a Q3 loss of $0.03 per share, beating estimates of a $0.10 loss. Meanwhile, revenue reached $155.1 million, topping forecasts of $151.8 million.

Stifel Stays Bullish on RKLB

Rasmussen highlighted that Rocket Lab’s revenue topped the high end of its guidance, reflecting an impressive 48% year-over-year growth. He also noted the strong momentum in the Electron rocket program, which added 17 launches to its backlog worth about $145 million, with average selling prices continuing to rise. Notably, the company completed four launches in Q3, bringing its year-to-date total to 16. Overall, the company remains on track for over 20 launches in 2025.

Rasmussen added that with management aiming to have Neutron ready for launch in Q1 2026. He views this as a “more realistic goal,” reflecting Rocket Lab’s focus on mission success over speed.

Even before the results, Rasmussen maintained a bullish outlook on RKLB. He believes the company has benefited from higher average selling prices for its Electron rocket, driven by a stronger product mix. Additionally, he stated the steady growth in its Space Systems division as the Space Development Agency (SDA) program moves into full production.

What Lies Ahead for Investors?

For the next quarter, Rocket Lab expects to surpass its annual launch record and generate revenue between $170 million and $180 million, about 2% above analyst estimates at the midpoint.

Meanwhile, the company’s medium-lift Neutron’s launch in Q1 2026 marks a major step toward capturing larger and more profitable satellite constellation missions.

For now, the Electron rocket remains the Core revenue driver, but Neutron is seen as the next major growth catalyst. Management expressed confidence in the project’s progress while keeping expectations realistic that investors are likely to appreciate.

Is Rocket Lab Stock a Buy?

According to TipRanks, RKLB stock has received a Moderate Buy consensus rating, with nine Buys and four Holds assigned in the last three months. The average stock price target for Rocket Lab is $61.91, suggesting a potential upside of 19.3% from the current level.