Should You Still Buy Rocket Lab Stock (RKLB) After Its Record-Breaking Rally?

Rocket Lab (RKLB) has taken investors on a thrilling ride, recently soaring to an all-time high. The stock jumped over 9% on Monday, extending last week’s rally. Over the past 12 months, RKLB has skyrocketed more than 550%. Looking ahead, analysts remain strongly bullish on the company’s long-term potential, though the near-term upside is now limited due to the stock’s recent surge.

What’s Behind RKLB’s Recent Surge?

Rocket Lab’s recent surge isn’t tied to major news, but it may be benefiting from growing investor interest in a non-Musk space alternative. Since Elon Musk’s public clash with President Trump, RKLB has climbed over 20%. Some speculate Musk’s silence amid rising geopolitical tensions could pose risks to his ventures, potentially benefiting rivals like Rocket Lab.

Additionally, the rising global instability continues to highlight demand for Rocket Lab’s defense and surveillance satellite launches, supporting its long-term viability. Meanwhile, the company’s Electron rocket for small satellites and upcoming Neutron rocket for medium payloads position the company to tap into rising demand for cost-effective, reliable space access.

Analysts Remain Bullish on RKLB Stock

Cantor Fitzgerald analyst Andres Sheppard recently raised his price target on RKLB to a Street-high $35 while maintaining a Buy rating. He cited the company’s strong growth prospects, 66 successful launches, and strategic moves like the Neutron rocket program and acquisitions of Mynaric and Geost.

Earlier, Stifel Nicolaus’ five-star-rated analyst Erik Rasmussen also reiterated a Buy rating on RKLB. He emphasized the importance of the Neutron rocket, set for launch in the second half of 2025, as a key step in Rocket Lab’s goal to become a fully integrated space company.

Is RKLB a Good Stock to Buy?

According to TipRanks, RKLB stock has received a Strong Buy consensus rating, with nine Buys and three Holds assigned in the last three months. The average Rocket Lab stock price target is $30.20, suggesting a potential downside of 8% from the current level.

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