Rocket Lab (RKLB) stock soared 6.1% on Friday after top Morgan Stanley analyst Kristine Liwag upgraded the space launch services provider to Buy from Hold and boosted the price target to $105 from $67. Morgan Stanley has an “attractive industry view” on space technology companies and expects the tailwinds that drove 2025 outperformance to continue this year.
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Space stocks AST SpaceMobile (ASTS) and Intuitive Machines (LUNR) jumped 14.3% and 10.7%, respectively, following Morgan Stanley’s favorable comments. Moreover, AST SpaceMobile secured a “prime contract position” on the U.S. Missile Defense Agency’s Scalable Homeland Innovative Enterprise Layered Defense (SHIELD) program.
Morgan Stanley Turns Bullish on RKLB Stock
Liwag highlighted that Rocket Lab is seeing growing market recognition and is being viewed as a “strategically-important, multi-faceted space company with credible long-term growth optionality.”
The 5-star analyst contended that while RKLB stock’s valuation has risen significantly, it is justified, given consistent launch execution and a credible entry into a capacity-constrained medium-lift market. Liwag also cited growing commercial and government demand and better visibility into long-term revenue as the reasons for the stock’s premium valuation.
Additionally, Liwag considers Rocket Lab’s $816 million Space Development Agency (SDA) Tranche 3 Tracking Layer award as a key win. She added that this contract further demonstrates the company’s ability to compete and win against more established Defense Primes. Moreover, the analyst expects Rocket Lab’s SDA win to improve its positioning for future Golden Dome opportunities.
Is Rocket Lab a Good Stock to Buy?
Currently, Wall Street has a Moderate Buy consensus rating on Rocket Lab stock based on seven Buys and three Holds. The average RKLB stock price target of $76.63 indicates 20.4% downside risk from current levels. RKLB stock has rallied more than 291% over the past year.
