Rocket Lab rises after analysts lift price targets
Commercial space company, retail favorite, and low-key Trump stock Rocket Lab USA rose Tuesday after analysts lifted their price targets for the shares. Deutsche Bank moved its target to $27 from $24. KeyBanc Capital Markets lifted its bogey for the shares by a buck to $29.
The urge to use jet-propulsion-related puns is strong when it comes to Rocket Lab. It’s up a remarkable 500% over the last 12 months, thanks largely to a surge after last year’s US presidential election.
That postelection rally may have be related to President Trump’s focus on space-related military activity — a big part of Rocket Lab’s business is selling space launches to the US government — or the influence of Tesla CEO Elon Musk’s sway in the administration. Musk, of course, also runs the largest commercial space company, SpaceX, and could be rationally expected to push for easier regulations and more federal funding for the space business.
At any rate, the excitement over Rocket Lab hinges on growth, with Wall Street expecting Rocket Lab’s revenues to rise more than 30% this year. Still, the company remains mired in the red, with analysts’ expectations for losses up to $200 million in 2025, wider than last year.
As CEO Peter Beck told us late last year, those losses are why the company’s strategy depends on its ability to bring its next-generation Neutron rocket online later this year. The larger rocket would allow the company to charge higher prices and slow cash burn.
That postelection rally may have be related to President Trump’s focus on space-related military activity — a big part of Rocket Lab’s business is selling space launches to the US government — or the influence of Tesla CEO Elon Musk’s sway in the administration. Musk, of course, also runs the largest commercial space company, SpaceX, and could be rationally expected to push for easier regulations and more federal funding for the space business.
At any rate, the excitement over Rocket Lab hinges on growth, with Wall Street expecting Rocket Lab’s revenues to rise more than 30% this year. Still, the company remains mired in the red, with analysts’ expectations for losses up to $200 million in 2025, wider than last year.
As CEO Peter Beck told us late last year, those losses are why the company’s strategy depends on its ability to bring its next-generation Neutron rocket online later this year. The larger rocket would allow the company to charge higher prices and slow cash burn.
