Rocket Lab USA (RKLB) stock soared on Thursday after the aerospace company announced a launch deal with the European Space Agency. This will see it launch two small spacecraft to test a planned low Earth orbit positioning, navigation and timing (LEO-PNT) constellation.
Confident Investing Starts Here:
- Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions
- Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter
Rocket Lab USA will launch the first of these satellites no earlier than December 2025. The two satellites also have different manufacturers, with one made by GMV and the other by Thales Alenia Space. These are two of a planned 10-satellite setup.
The European Space Agency needs the satellites launched before Spring 2026 to comply with International Telecommunication Union regulations. That’s why it chose Rocket Lab USA for the task, as the company offered a quick launch period to meet these requirements.
What This Means for Rocket Lab USA Stock
Investors were pleased with the news that Rocket Lab USA will handle the launch of the two satellites for the European Space Agency. This sent shares of RKLB stock 13.38% higher as of Thursday morning, extending their 43.66% rally year-to-date.
Unfortunately, this may not lead to further launches for Rocket Lab USA. The European Space Agency would prefer to use rocket companies in its home territory. It’s likely to do so for the launch of an estimated 300-satellite network after the LEO-PNT test is finished.
Is Rocket Lab USA Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Rocket Lab USA is Strong Buy, based on nine Buy and three Hold ratings over the past three months. With that comes an average RKLB stock price target of $30.20, representing a potential 17.89% downside for the shares.
