Shares of Rocket Lab Corp (NASDAQ:RKLB) are trading higher Monday morning after Morgan Stanley significantly raised its price target and compared the company to SpaceX. Here’s what investors need to know.
What To Know: Morgan Stanley has significantly increased its price target for Rocket Lab to $68 from a previous $20, while reiterating its Equal-Weight rating.
The firm’s new valuation is based on a novel framework that compares Rocket Lab to an earlier-stage SpaceX, using SpaceX’s 2021 implied valuation as a baseline but applying a ~40% discount to account for risks.
The analysts see Rocket Lab as a key public market alternative for investors seeking exposure to the space economy, describing it as a “fast-follower” to SpaceX in launch reusability and satellite constellation services.
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The Morgan Stanley analyst details updated financial forecasts, projecting an approximate 41% compound annual sales growth rate for Rocket Lab from 2025 to 2029. Morgan Stanley also increased its launch cadence estimates for both Electron and the company’s upcoming Neutron rocket.
While acknowledging the near-term risk associated with Neutron’s debut flight later this year, the firm is optimistic about the company’s trajectory, now forecasting Rocket Lab to achieve positive adjusted EBITDA in 2026 and positive free cash flow by 2027.
What Else: Investor enthusiasm follows last week’s news of a new partnership with the Japan Aerospace Exploration Agency for two dedicated Electron rocket launches scheduled for 2025 and 2026.
The agreement came on the heels of two other significant deals with Japanese satellite companies. The company secured a three-mission contract with the Institute for Q-shu Pioneers of Space, expanding its total launches for the firm to seven. The contract was preceded by a landmark 10-launch agreement with Synspective, Rocket Lab’s largest single-customer order to date.
The recent contracts underscore the increasing demand for Rocket Lab’s services and help solidify its position as a leader in the commercial launch market. The company is ramping up production to meet rising demand, planning for 20 or more missions in 2025.
Benzinga Edge Rankings: The stock’s rally is underscored by its Benzinga Edge rankings, which show an exceptionally high Momentum score of 98.85 and a positive price trend across all timeframes.
RKLB Price Action: Rocket Lab shares were up 3.53% at $66.53 at the time of publication Monday, according to Benzinga Pro. The stock is trading near its 52-week high of $73.50.
Rocket Lab stock is trading significantly above its 50-day ($48.33), 100-day ($41.78) and 200-day ($32.48) moving averages, indicating a bullish trend. Key resistance is observed near the recent high of $70.44, while support can be identified around the 50-day moving average.
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How To Buy RKLB Stock
Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.
For example, in Rocket Labs’ case, it is in the Industrials sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.
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