Shares of aerospace and defense company Rocket Lab (NASDAQ:RKLB) jumped 7.2% in the afternoon session after the company received a significant price target increase from Citi and announced a key partnership for its reusable Neutron rocket.
Citi analyst Jason Gursky raised the firm’s price target on Rocket Lab to $50 from $33, maintaining a “Buy” rating. The upgrade reflects a new valuation model that looks ahead to the company’s revenue potential in 2029, by which time Citi projects revenue could reach approximately $2.6 billion, driven by 20 annual Neutron launches and new satellite contracts. Adding to the positive momentum, Rocket Lab announced it has awarded a contract to Bollinger Shipyards to construct the ocean landing platform for its reusable Neutron rocket. The 400-foot vessel, named ‘Return On Investment’, is a critical piece of infrastructure that will enable the rocket to land at sea and be reused for future missions. This reusability is fundamental to the Neutron program’s strategy to increase launch frequency and serve a growing market for large satellite deployments and national security missions.
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Rocket Lab’s shares are extremely volatile and have had 74 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
Rocket Lab is up 70% since the beginning of the year, and at $42.43 per share, has set a new 52-week high.
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