Nauman Khan
1 min read
This article first appeared on GuruFocus.
Rocket Lab USA (NASDAQ:RKLB) shares jumped about 6% on Friday after Morgan Stanley upgraded the stock from Equalweight to Overweight and raised its price target to $105 from $67.
The brokerage cited growing market recognition of Rocket Lab as a strategically-important, multi-faceted space company with credible long-term growth optionality. The firm highlighted Rocket Lab’s 52% revenue growth over the past twelve months, despite ongoing unprofitability.
Investors welcomed news of the company’s $816 million Space Development Agency (SDA) Tranche 3 Tracking Layer contract, marking the largest single award in Rocket Lab’s history. The contract includes 18 satellites equipped with advanced missile warning and tracking sensors.
Analysts noted the award positions Rocket Lab as a prime contractor for future projects, including the Golden Dome program, potentially supporting long-term revenue growth.
Other market observers cautioned that the stock’s valuation remains elevated and highlighted insider selling, suggesting short-term gains may be moderate.
Rocket Lab has also maintained momentum through repeated successful Electron launches and steady progress on its Neutron launch vehicle, reinforcing investor confidence.
