‘I Wouldn’t Sell,’ Says Investor About Rocket Lab Stock

After a brief pause, Rocket Lab (NASDAQ:RKLB) resumed its monster rally on Monday, with the stock once again pushing higher. The space company has become a favorite among investors, with shares soaring 408% over the past year.

One investor, who goes by the pseudonym Quantryon Capital (QC), believes that much of the optimism is down to the company “transitioning from a launch provider to a vertically integrated space and defense infrastructure company.”

Although the latest earnings release highlighted accelerating revenue growth, a record backlog, solid defense demand, and improving prospects for Neutron, QC believes the company’s evolving business model is an especially important takeaway. In Q1, for instance, the Space Systems segment generated roughly $136.7 million in revenue, compared to about $63.7 million from Launch Services. That distinction matters because Rocket Lab’s launch services business has historically appeared difficult to “scale efficiently.”

Unlike launch operations, the Space Systems segment gives Rocket Lab several avenues to offer higher-value services tied to space infrastructure, including propulsion systems, spacecraft buses, reaction wheels, solar arrays, optical communications, satellite manufacturing, and other mission-critical subsystems.

The defense segment is also gaining importance, more quickly than QC expected. With HASTE emerging as a strategic product, the 20-launch MACH-TB contract, increasing hypersonic testing demand, the Anduril partnership, and the expanding role of Golden Dome, Rocket Lab is positioning itself as a credible defense player. This matters because defense-driven space demand operates very differently from more speculative commercial programs.

Of course, there are risks involved here, and the main one remains Neutron execution. The market does not treat Neutron as upside, but as an “essential component of Rocket Lab’s value proposition.” That creates a tougher setup, since space tech development is inherently exposed to delays, technical setbacks, and cost overruns.

Nevertheless, QC thinks Rocket Lab is evolving beyond a pure launch-focused company into a broader space platform, driven by the expansion of its Space Systems business, growing defense exposure, deeper vertical integration, and the optionality tied to Neutron.

“Even though the stock valuation already includes a lot of optimism around the business, I continue to believe that RKLB is among the most attractive plays on space infrastructure,” QC summed up.

Accordingly, Quantryon Capital rates RKLB a Buy. (To watch QC’s track record, click here)

Among the Street’s analysts, the stock claims 10 Buys and 4 Holds, all coalescing to a Moderate Buy consensus rating. However, the $100.17 average price target suggests shares are overvalued by ~24%. Given this gap, watch out for either price target hikes or rating downgrades shortly. (See RKLB stock forecast)

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