Aerospace manufacturer Rocket Lab (RKLB) has been one of Wall Street’s darlings this year, and analysts at Stifel think the momentum may only be getting started.
Although the stock has gained more than 830% over the past year, Stifel recently raised its price target from $34 to $55, implying another 25% upside from today’s levels.
The firm points to continued confidence in the company’s progress on its Neutron rocket, which is on track for a fourth-quarter launch.
Neutron is Rocket Lab’s medium-lift launch vehicle, designed to carry large payloads to low Earth orbit. It’s a fast-growing market as commercial and government players race to expand satellite infrastructure.
Stifel also highlighted Rocket Lab’s strong top-line momentum and improving gross margins, even as the company remains unprofitable. First-quarter revenue came in at $122.6 million, up 32% from a year earlier.
Rocket Lab is expected to turn a profit by fiscal year 2027 as operating efficiency improves and research and development spending tapers off. That timeline hasn’t dampened analyst optimism.
Commenting on the company’s financials, investor and commentator Dave G Investing noted that while revenue growth has been “fabulous,” the path to profitability is still weighed down by heavy investment.
“In some ways, the profitability of their Electron launch business and satellite segment is being masked by the R&D costs of Neutron,” he said.
Rocket Lab lands another NASA partnership
Adding to its momentum, Rocket Lab recently secured a new partnership with NASA, this time focused on studying low-cost orbital transfer vehicles (OTVs) using the Neutron rocket platform.
The company is one of six selected for the program, joining Arrow Science and Technology, Blue Origin, Firefly Aerospace, Impulse Space, and United Launch Services.
According to NASA, “The studies will be complete by mid-September. NASA will use the findings to inform mission design, planning, and commercial launch acquisition strategies for risk-tolerant payloads.”
Rocket Lab’s relationship with the space agency dates back to 2010 when it was awarded a contract to explore low-cost launch alternatives. That was RKLB’s breakthrough that opened the door for future collaboration.
As recently reported by InvestorsObserver, Rocket Lab partnered with NASA in May to support the agency’s Aspera mission, further cementing its role in U.S. space efforts.
With a flagship launch in the works, a NASA relationship, and a commercial satellite boom in play, Rocket Lab’s next chapter could send the stock even higher, assuming the rocket gets off the ground.
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