Rocket Lab 'In Prime Position To Challenge' SpaceX

A Rocket Lab USA Inc RKLB analyst is raising the price target on the space stock after strong second-quarter results and third-quarter guidance.

• RKLB shares are trending up modestly. Track live prices here.

The Rocket Lab Analyst: Needham analyst Ryan Koontz maintained a Buy rating on Rocket Lab and raised the price target from $45 to $55.

Read Also: Rocket Lab USA Q2 FY2025 Earnings Call Transcript

The Analyst Takeaways: Rocket Lab reported strong second quarter results with revenue and adjusted EBITDA coming in above consensus estimates, Koontz said in a new investor note.

The analyst said Space Systems revenue up 27% year-over-year and Launch revenue up 59% year-over-year helped the quarterly results and gross margin expansion was impressive.

"Management sounds increasingly confident in steady revenue growth and gross margin expansion," Koontz said.

The analyst said the exemplary execution by Rocket Lab creates a "new space challenger."

"The global demand surge in New Space tech and desperate need for an alternative to SpaceX opens the door for RKLB to ascend to its much higher aspirations."

Koontz said Rocket Lab's new Neutron rocket remains on track to test launch by the end of the year.

Federal opportunities for Rocket Lab is another highlight in the report for Koontz.

The analyst said Rocket Lab's acquisitions of Mynaric and Geost are expected to boost the company's pipeline.

Koontz raises fiscal 2025 and fiscal 2026 estimates after the report for both revenue and adjusted EBITDA.

"Their deep vertical integration differentiates the company from most competitors and puts RKLB in a prime position to challenge market leader SpaceX."

RKLB Price Action: Rocket Lab stock is up 1.9% to $45.07 on Friday versus a 52-week trading range of $5.03 to $53.44. Rocket Lab stock is up 80.2% year-to-date in 2025.

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• Rocket Lab Q2 Earnings Preview: Will Shares Lift Off After Results, Launch Update?

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