Key Takeaways
Rocket Lab (RKLB) shares rebounded in pre-market trading on Thursday, rising 2% and partially recovering from an 11% drop the previous day. This upward trend is attributed to two significant events: a milestone defense agreement and positive ratings from Wall Street analysts.
The aerospace company revealed that it has secured a $190 million contract with the Department of Defense, planning to utilize its HASTE launch system to conduct 20 hypersonic test missions. This marks the largest single launch agreement in the company's history.
The agreement is part of the MACH-TB 2.0 program—officially known as the Multi-Service Advanced Capability Hypersonic Test Platform—managed by the Naval Surface Warfare Center, Crane Division. The project aims to accelerate hypersonic flight experiments and advance military aerospace capabilities.
HASTE, or Hypersonic Accelerator Suborbital Test Electron, is a specialized variant of Rocket Lab designed to support hypersonic test missions. Since 2023, the company has conducted HASTE operations in support of the MACH-TB program, achieving speeds exceeding Mach 5. According to Rocket Lab, all HASTE missions to date have maintained a 100% success rate.
CEO Peter Beck described the contract as a “proud moment,” emphasizing that the company’s manufacturing capabilities, rapid launch cadence, and technical expertise were key factors in successfully securing the contract.
Total Order Volume Exceeds $2 Billion
This growth trend is noteworthy. If this momentum continues, 2026 could potentially become a peak sales year before the halfway mark.
Clear Street Initiates Optimistic Rating
Clear Street analyst Gregory Pendy initiated coverage on RKLB on Thursday morning, giving it a buy rating and setting a target price of $88, indicating over 25% upside potential from current trading levels.
Pendy highlighted that Rocket Lab’s vertically integrated business structure is a strategic differentiator and pointed out two major expansion catalysts: the Electron rocket for small payloads and the upcoming Neutron rocket for medium payloads.
The Neutron is designed with reusability features aimed at providing greater payload capacity, with its first flight currently expected in Q4 2026, following adjustments to the production timeline. Pendy believes this platform will bring broader market opportunities and enhance revenue generation per launch, surpassing Electron.
He also noted that the launch frequency of Electron is a growth mechanism, with approximately 52 Electron launches expected annually by 2030.
In the space systems sector, Pendy observed that Rocket Lab is increasingly securing positions as a prime contractor rather than a subcontractor, a shift that typically leads to higher margins.
Summary
Rocket Lab (RKLB) stock has risen due to a $190 million defense contract and positive analyst ratings, showcasing strong market momentum. Analysts believe the company has significant growth potential and an optimistic sales outlook ahead.