As Rocket Lab Acquires Geost, Analyst Confidence In Defense Strategy Grows

Rocket Lab Corp RKLB shares have been volatile in recent sessions, following a strong second-quarter earnings report and a key strategic acquisition. Here’s what investors need to know.

What To Know: The company recently posted better-than-expected quarterly sales of $144.49 million, marking a 36% increase year-over-year and beating analyst consensus. Despite a slight earnings miss with a loss of 13 cents per share, Rocket Lab showcased impressive operational improvements, expanding its gross margin by 650 basis points. The company projects continued growth, guiding for third-quarter revenue between $145 million and $155 million.

Fueling further optimism, Rocket Lab completed its acquisition of Geost, a developer of electro-optical payloads, for $275 million in cash and stock. This move enhances its capabilities as a prime contractor for U.S. national security and defense projects, solidifying its role in programs like the Space Development Agency's proliferated warfighter architecture. CEO Peter Beck emphasized that the acquisition accelerates the company's ability to deliver mission-critical systems.

The positive developments have prompted Wall Street analysts to raise their outlooks. Needham increased its price target to $55, citing strong execution, impressive revenue growth across its Space Systems and Launch divisions and the company’s deep vertical integration.

The analyst noted that with the new Neutron rocket on track for launch by year-end, Rocket Lab is in a “prime position to challenge” industry leader SpaceX. Keybanc also raised its target to $50, reflecting growing confidence in the company’s trajectory.

Price Action: According to data from Benzinga Pro, RKLB shares are trading higher by 2.1% to $45.20 Monday afternoon. The stock has a 52-week high of $53.44 and a 52-week low of $5.74.

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How To Buy RKLB Stock

By now you're likely curious about how to participate in the market for Rocket Lab – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.

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