Rocket Lab Secures $816 Million Contract, Analyst Upgrade Boosts Outlook
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 02 2026
0mins
Should l Buy RKLB?
Source: Fool
Rocket Lab Corp's stock fell 5.01% today, crossing below its 5-day SMA, amid a slight decline in the broader market with the Nasdaq-100 down 0.08% and the S&P 500 down 0.07%.
The decline comes despite Rocket Lab securing an $816 million contract with the U.S. Space Force to design and manufacture 18 satellites, which elevates its total defense contract value above $1 billion. Additionally, Morgan Stanley upgraded Rocket Lab from 'Equal Weight' to 'Overweight', raising its price target from $67 to $105, citing the company's strong execution capabilities in the medium-lift market. However, concerns about execution risks remain, particularly following NASA's cancellation of the Mars Sample Return program and a testing failure in the Neutron rocket program.
This contract and the analyst upgrade highlight Rocket Lab's potential for growth in the aerospace sector, but the stock's current volatility and execution challenges may lead to cautious investor sentiment in the short term.
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Analyst Views on RKLB
Wall Street analysts forecast RKLB stock price to rise
11 Analyst Rating
7 Buy
4 Hold
0 Sell
Moderate Buy
Current: 66.010
Low
63.00
Averages
86.89
High
120.00
Current: 66.010
Low
63.00
Averages
86.89
High
120.00
About RKLB
Rocket Lab Corporation is an end-to-end space company. The Company designs and manufactures small and medium-class rockets, spacecraft and spacecraft components, and related software and services to support the space economy. The Company delivers reliable launch services, satellite manufacture, spacecraft design services, spacecraft components, spacecraft manufacturing, and other spacecraft and on-orbit management solutions that make it easier to access space. Its Launch Services segment provides launch and launch-related services to customers on a dedicated mission or ride-share basis. Its Space Systems segment comprises the design and manufacture of spacecraft components and spacecraft program management services, space data applications, and mission operations. Its space systems solutions are the building blocks for spacecraft, which include composite structures, reaction wheels, star trackers, solar solutions, radios, separation systems, and command and control spacecraft software.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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See More
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- Futures Market Movement: As of 3:00 a.m. ET on Friday, Dow, S&P 500, and Nasdaq futures were all down by 0.1%, indicating a cautious stance among investors ahead of the inflation data release, which could lead to increased market volatility.
- Retail Sentiment Analysis: The SPDR S&P 500 ETF (SPY) and Invesco QQQ Trust (QQQ) are showing 'bearish' and 'extremely bearish' sentiments respectively, reflecting investor concerns about market prospects, particularly in the context of high trading volumes.
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See More
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- Hypersonic Testing Capability: The HASTE rocket will be utilized for this launch, capable of conducting tests at speeds up to Mach 20, significantly enhancing hypersonic testing capabilities for the U.S. and its allies, addressing the urgent needs of the Department of Defense for rapid testing.
- Increased Launch Frequency: This marks Rocket Lab's fourth hypersonic test mission in under six months, enhancing U.S. competitive advantage in space by lowering costs and increasing launch tempo, thereby ensuring national security.
- Strategic Partnerships: The mission involves collaboration with Australian aerospace engineering firm Hypersonix, showcasing Rocket Lab's strategic positioning in international cooperation and technological innovation, further solidifying its leadership in the global space market.
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