Rocket Lab Stock Is On Investor Radars: What's Going On?

Rocket Lab Corp RKLB shares are up about 7% over the past month. Here’s a look at why the stock has captured investor’s attention recently.

What To Know: End-to-end space company Rocket Lab saw its shares surge in late May after the company announced the acquisition of high-performance optical systems producer Geost.

Rocket Lab said the acquisition positioned the company as a provider of end-to-end national security space solutions and strengthened its position for achieving the U.S. Department of Defense’s goals for resilient, proliferated space architectures, like the proposed Golden Dome architecture.

About a week later, the stock climbed to three-month highs following a public dispute between SpaceX’s Elon Musk and President Donald Trump.

The feud was sparked by Musk's disapproval of a large tax bill being pushed by Trump. As Trump and Musk took jabs at one another on social platforms, Rocket Lab shares soared as investors began speculating that it could lead to more opportunities for other space companies, especially Rocket Lab, which has positioned itself as a provider of national security space solutions.

Rocket Lab is thought to be one of the companies being considered for Trump's Golden Dome missile defense system. When the architecture was announced, Trump said the system would feature next-generation technologies, including "space-based sensors and interceptors." 

The Senate is currently working on Trump's comprehensive legislative package, known as the “One Big, Beautiful Bill.” The bill is expected to include tens of billions of dollars for the Golden Dome.

Multiple analysts lifted price targets on Rocket Lab following the company’s Geost acquisition. Needham lifted its target to $32, Stifel raised its price target to $34 and Roth Capital increased its target to $35. Cantor Fitzgerald maintained Rocket Lab with an Overweight rating last week and raised its price target from $29 to $35.

While Rocket Lab investors await potential announcements related to the Golden Dome, Rocket Lab has continued to accelerate launches. The company scheduled its third Electron launch in less than a month at the beginning of June. Rocket Lab also announced that it was selected to launch two dedicated missions for a confidential commercial customer earlier this week.

RKLB Price Action: Rocket Lab shares were up 3.07% Wednesday, trading at $27.23 at the time of publication, according to Benzinga Pro. Technical indicators suggest the stock could be headed higher in the near term.

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Photo: courtesy of Rocket Lab.