Shares of aerospace company Rocket Lab USA (RKLB) jumped more than 5% on Monday. The recent surge comes amid excitement in the satellite sector, following reports that Elon Musk’s SpaceX (PC:SPXEX) is targeting an $800 billion valuation through a secondary share sale. Meanwhile, satellite telecommunications company EchoStar (SATS) gained over 7% on Monday.
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For context, Rocket Lab is a space launch company specializing in small orbital rockets and satellite solutions, best known for its Electron rocket and upcoming Neutron launch vehicle.
What It Means for Rocket Lab
SpaceX’s massive valuation is drawing renewed attention to the satellite and commercial space sector, which could benefit Rocket Lab in the short term. At the same time, the surge in attention and capital flowing into space-related ventures may also open new opportunities for Rocket Lab, including partnerships and contracts in niche launch services or specialized satellite deployments.
Notably, William Blair’s analyst Louie DiPalma noted that the valuation news could be a positive development for owners of satellite spectrum rights. If SpaceX ultimately reaches the reported $800 billion valuation, it would serve as a mark-to-market moment, indicating that traditional satellite spectrum rights are likely worth more than the market had previously assumed.
On the flip side, SpaceX’s growing scale and capital raise could intensify competition in satellite launches, rideshare services, and payload deployment, potentially putting smaller players like Rocket Lab at a pricing and operational disadvantage.
What Lies Ahead for Investors?
RKLB shares have surged more than 100% so far this year. Looking ahead, analysts remain optimistic about the company’s upcoming Neutron rocket launch, scheduled for 2026.
Among the bulls, Baird’s five-star-rated analyst Peter Arment has the highest price target of $83 for RKLB stock. This implies an upside of over 60% from the current level. Arment believes Rocket Lab’s Neutron rocket is set to position the company as a direct competitor to SpaceX’s Falcon 9, targeting what he calls the “highly lucrative medium-lift market.”
Is RKLB a Good Stock to Buy?
According to TipRanks, RKLB stock has received a Moderate Buy consensus rating, with nine Buys and four Holds assigned in the last three months. The average price target for Rocket Lab is $65.17, suggesting an upside of 26.4% from the current level.
