Rocket Lab (RKLB) shares have been dropping ever since the aerospace company announced in its Q3 earnings that the launch of its Neutron rocket would be delayed from late 2025 to sometime in 2026. For context, Neutron is a new, partially reusable rocket that’s bigger than Rocket Lab’s current Electron rocket and is designed to carry heavier loads. It’s being built for missions like launching large satellite networks, supporting national security, traveling to other planets, and eventually carrying people.
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CEO Peter Beck said that the firm chose to delay the launch so it could focus on making sure the rocket is safe and reliable, rather than rushing to meet the original deadline. Although the main hardware for Neutron is already built and being tested, Rocket Lab said it needs more time to finish safety checks and risk reduction before it’s ready to fly. Interestingly, though, five-star BTIG analyst Andre Madrid pointed out that Rocket Lab would have posted positive adjusted EBITDA in Q3 if not for the costs tied to the delay.
In addition, the total development cost for Neutron is expected to reach about $360 million by the end of the year across research, development, and equipment spending. Madrid also mentioned that Rocket Lab’s business is still growing, thanks to more frequent Electron rocket launches and improved profit margins in its space systems division. However, even though Rocket Lab has made progress in other areas, Madrid said the firm is staying cautious and won’t upgrade its rating on the stock until there’s more clarity about Neutron’s success.
Is RKLB Stock a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on RKLB stock based on nine Buys, four Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average RKLB price target of $64.33 per share implies 50.5% upside potential.
