Top Analyst Upgrades Rocket Lab Stock (RKLB) to Buy. Here’s Why

Top Citizens analyst Trevor J. Walsh upgraded Rocket Lab (RKLB) stock from Market Perform to Market Outperform (equivalent to Buy) and maintained his price target of $85, pointing to 25% upside potential from current levels.

Walsh, a five-star analyst, said Rocket Lab’s growing role across launch services, defense space systems, and space services is improving its risk-reward profile. He also noted that strong funding and geopolitical support are helping drive the stock drive higher.

What Is Driving the Bullish View?

Rocket Lab stock is down about 3% year to date, and Walsh sees this as a good “entry point.” He highlighted several factors that could support Rocket Lab’s growth going forward.

First, the company is building a more diversified business. It is moving beyond rocket launches into defense and space services, which can bring higher margins and more steady growth.

Second, industry trends are turning positive, which directly benefits Rocket Lab. Rising geopolitical tensions and higher defense spending are expected to increase demand for space and defense services, where the company is expanding its presence. The proposed U.S. budget includes about $88.5 billion for space, with a sharp rise in Space Force funding, creating more opportunities for Rocket Lab to win contracts.

Third, the expected SpaceX IPO is drawing fresh interest to the sector. Citizens believes this could lead investors to take a closer look at Rocket Lab and its growth potential. For context, SpaceX has reportedly filed for an IPO, targeting a valuation of around $2 trillion and could raise up to $75 billion. If timelines hold, the IPO may take place as early as June 2026, potentially making it one of the biggest listings in history.

Is RKLB a Buy, Sell, or Hold? 

Currently, Wall Street has a Moderate Buy consensus rating on Rocket Lab stock based on ten Buys and five Holds. The average RKLB stock price target of $86.77 indicates about 28.22% upside potential.