Space stock Rocket Lab Corp (NASDAQ:RKLB) receives a price target increase with expected revenue growth on the horizon and the potential to become one of the leaders in the space sector.
RKLB shares are under pressure. Check the analyst’s take here.
The Rocket Lab Analyst: KeyBanc analyst Michael Leshock maintained an Overweight rating on Rocket Lab and raised the price target from $50 to $75.
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The Analyst Takeaways: Following a meeting with Rocket Lab CEO Peter Beck and CFO Adam Spice, Leshock raised the price target for the space company and provided insight into future growth in an investor note.
"We gained incremental visibility into the strong growth within its Space Systems segment and Archimedes engine production, and we believe RKLB is solidifying itself as a national security asset," Leshock said.
The analyst said the company's cash position can help fuel its growth investments, support potential M&A and future space ventures. "We saw a meaningful step-up in activity vs. our prior tour of these RKLB facilities in May 2024."
Leshock says Rocket Lab has "multiple avenues for significant upside," modeling 30% growth year-over-year for the company's Space Systems segment in 2025 and 2026 and highlighting new defense contract wins.
He said the company's Launch Services segment is seeing significant progress, with 15 successful Electron rocket launches year-to-date, and plans for the company's Neutron to launch this year.
Leshock added that a longer-term opportunity for Rocket Lab could be building out its own satellite constellation. "We believe the RKLB team is among the best in the world to effectively deploy capital in the high-growth space industry."
The analyst noted that there is potential for Rocket Lab to follow a similar growth path to that of SpaceX, becoming a leader in the space industry over time.
RKLB Price Action: Rocket Lab stock is down 2.6% to $65.28 on Friday versus a 52-week trading range of $10.29 to $73.97. Rocket Lab stock is up 161.6% year-to-date in 2025.
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