Rocket Lab (RKLB), the space launch and satellite company, is trading about 2% higher in premarket trading on Friday after winning a new $90 million contract from the U.S. Space Force. The deal marks Rocket Lab’s first operational geostationary orbit satellite program and further expands the company’s growing role in national security space missions.
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The stock move also comes ahead of Rocket Lab’s latest Electron launch mission for Japanese earth-imaging company Synspective, adding another near-term catalyst for investors.
Rocket Lab Wins Major Space Force Contract
Under the agreement, Rocket Lab will design, build, and operate two geostationary satellites carrying the Heimdall space domain awareness payload. The satellites are expected to help track objects in space and support broader defense monitoring efforts.
Rocket Lab will serve as the prime contractor for the mission and handle nearly every part of the project, including spacecraft manufacturing, payload integration, launch coordination, and on-orbit operations for up to five years.
The company also said the mission will deploy another radar imaging satellite capable of capturing Earth images through clouds and at night.
RKLB Stock Performance
Rocket Lab stock closed 7% lower on Thursday at $124.45. However, the stock remains up about 80% year-to-date and more than 385% over the past 12 months, supported by a steady flow of new contracts and growing demand for its launch services. Earlier this year, the company secured major deals tied to hypersonic testing missions and future Neutron rocket launches.
Rocket Lab’s backlog has now grown to more than $2.2 billion, while its launch schedule includes over 70 planned missions. Investors are also closely watching the company’s reusable Neutron rocket, with its first test launch expected later this year.
Is RKLB Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on RKLB stock based on 11 Buys, four Holds, and zero Sells assigned in the past three months. The average RKLB price target of $100.17 per share implies 20% downside potential.
