Analysts Raise Rocket Lab (RKLB) Stock’s Price Target to Joint Street-High – Here’s Why

Rocket Lab’s (NASDAQ:RKLB) Q1 report stunned Wall Street last week, with shares of the space company gaining 34% in Friday’s session after the results and outlook blew past expectations. It’s not as if the surge reflected a turnaround in sentiment, however, as Friday’s gains just turbocharged the momentum. The stock was already a high-flyer and has now delivered returns of 396% over the past year.

So, after such huge strides, investors might be wondering if it is time to step aside. Well, not according to Cowen analyst Gautam Khanna, who ranks among the top 1% of Street stock experts. Khanna maintained a Buy rating on the shares and raised his price target from $90 to a joint Street-high of $120, signaling there’s room for further gains of 14% in the months ahead. (To watch Khanna’s track record, click here)

Among Khanna’s key takeaways, the 5-star analyst highlights that RKLB secured more launch bookings in Q1 than the whole of 2025, underscoring “strong demand” for both Electron and Neutron. This included 31 Electron and HASTE bookings, a $190 million order covering 20 HASTE missions, as well as 5 Neutron bookings. Neutron remains on schedule for a first launch in 4Q26, with progress continuing across multiple components at the same time. If Neutron launches successfully in early Q4 and the cadence of subsequent launches is maintained, Khanna thinks that up to three payload-carrying launches could be possible in C27, although his estimates still assume two launches in C27, contributing about $100 million in sales. Given that medium-lift demand is unlikely to ease soon, the analyst also sees potential for RKLB to increase Neutron pricing at a similar trajectory to Electron’s historical price increases, which have seen a 5-year CAGR above 10%.

Meanwhile, on April 14, RKLB completed its acquisition of Mynaric, which is expected to create new partnership and revenue opportunities in Europe that were previously not accessible to the company. Mynaric is projected to contribute about $15 million in sales in Q2, though at lower gross margins than the broader segment, suggesting a normalized run-rate of roughly $18 million per quarter. The company is also beginning to recognize revenue from SDA Tranche 3 (a U.S. Space Development Agency satellite program phase), representing around 10% of the $816 million award in 2026 (~$82 million), although this also initially weighs on segment gross margins. Khanna thinks the growth in subsystems and components will help to partially offset these gross margin pressures.

Turning now to Needham’s Ryan Koontz, another analyst who ranks among the Street’s top 1%, who, after scanning the results, offers his opinion in a rather succinct way. “Wow,” says the 5-star analyst, before adding that he expects “strong progress across all business fronts.”

Koontz has now increased his F26/F27 revenue and Adj. EBITDA estimates, and like Khanna, has also raised his price target from $90 to a joint Street-high of $120. (To watch Koontz’s track record, click here)

As for the rest of the Street, based on an additional 8 Buys and 4 Holds, the stock claims a Moderate Buy consensus view. However, the $96.25 average price target now sits 9% below the current share price. With this in mind, watch out for either additional price target increases or rating downgrades shortly. (See RKLB stock forecast)

Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.