Shares of Rocket Lab USA (RKLB) are back in the spotlight after reporting mixed Q2 earnings last week. This prompted several top-rated Wall Street analysts to raise their expectations for the space launch and satellite services company. The upgraded outlook signals growing confidence in Rocket Lab’s long-term growth prospects despite near-term challenges. However, near-term gains may be limited after the stock’s huge 730% rise over the last 12 months.
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For context, Rocket Lab reported an EPS of -$0.13, missing the consensus estimate of -$0.10. However, revenue rose 36% year-over-year to $144.5 million, surpassing analysts’ forecast of $135.4 million.
Analysts Turn More Bullish on RKLB Stock
Following the results, four-star-rated analyst Ryan Koontz at Needham hiked his price target from $45 to $55 while maintaining his Buy rating. The new price suggests an upside of 23% from current levels.
Koontz stated that management is growing more confident in achieving steady revenue growth and expanding gross margins. He believes this growth could push non-GAAP operating margin to break-even by Q4 2026. The firm also noted that Rocket Lab’s new Neutron rocket is still on track for a test launch by late 2025.
Likewise, Cantor Fitzgerald’s Andres Sheppard raised his price target by around 54% with a Buy rating. Sheppard highlighted the expected launch of the Neutron rocket in Q4 2025 and the Space Development Agency’s (SDA) Tranche 3 Award as major catalysts for RKLB stock. The firm believes that if Neutron achieves a successful orbital launch, it could become the only real alternative to Elon Musk-owned SpaceX’s Falcon 9.
Meanwhile, KeyBanc’s top-rated analyst, Michael Leshock, pointed to stronger-than-expected margins and growing confidence in the progress of Rocket Lab’s Neutron rocket program. The firm noted that the company’s breakeven free cash flow forecast has been pushed back by three to six months, but said the delay is due to higher spending on growth opportunities, not operational problems. Leshock lifted his price target from $40 to $50 on RKLB stock.
Is RKLB a Good Stock to Buy?
According to TipRanks, RKLB stock has received a Moderate Buy consensus rating, with nine Buys and five Holds assigned in the last three months. The average price target for Rocket Lab is $46.58, suggesting a potential upside of 4.23% from the current level.
Year-to-date, RKLB stock has gained over 75%.
