Shares of space launch company Rocket Lab USA (RKLB) have been on a strong run, with the stock recently hitting fresh highs as investor excitement around space launches and defense contracts builds. Yet even as shares rally, a top Wall Street analyst is urging caution.
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A Five-Star Analyst Steps Back
KeyBanc Capital Markets analyst Michael Leshock, a five-star analyst on TipRanks, downgraded Rocket Lab from Overweight to Sector Weight. The downgrade was driven by valuation, not by concerns about the company’s operations or strategy.
Leshock said that many of Rocket Lab’s key growth catalysts — including improved launch execution, a growing space systems business, and stronger demand across the space sector — are now well established and reflected in the stock price. After the recent rally, he believes the shares offer a more balanced risk-reward profile in the near to medium term.
Rocket Lab’s sharp rise has been fueled by growing confidence in its business model and long-term role in the space economy. However, Leshock noted that with those positives largely priced in, there is less room for further upside in the short run, prompting him to remain on the sidelines for now.
Nevertheless, he described the company as one of the highest-quality players in the space sector and said he could become constructive again if the stock offers a more attractive entry point.
Is RKLB a Good Stock to Buy?
According to TipRanks, RKLB stock has received a Moderate Buy consensus rating, with six Buys and four Holds assigned in the last three months. The average price target for Rocket Lab is $71.43, suggesting a potential downside of 22.19% from the current level. RKLB shares have surged more than 269% in the last 12 months.
