- Rocket Lab won an $816 million Space Development Agency Tranche 3 Tracking Layer contract for 18 satellites, its largest single award.
- Shares rose on Friday after the contract announcement and a Morgan Stanley upgrade to overweight, with the bank lifting its price target to $105 from $67.
- “attractive industry view” was introduced by Morgan Stanley for the space technology sector in 2026, citing continued favorable trends from 2025.
- Other analysts offered mixed ratings: Needham set a Buy and $90 target, while Cantor Fitzgerald remained Overweight with a $54 target.
- Analysts noted the award could position Rocket Lab as a prime contractor for future efforts such as the Golden Dome program, though some warned of high valuation and insider selling.
On Friday, Rocket Lab announced an $816 million Space Development Agency Tranche 3 Tracking Layer contract that includes 18 satellites with missile-warning and tracking sensors, and its shares climbed after the news and a separate analyst upgrade. The award is the largest single contract in the company’s history and was cited as a factor supporting the company’s longer-term revenue outlook.
Analysts said the contract positions Rocket Lab as a potential prime contractor for future programs, including the Golden Dome effort, which could increase its role on defense projects. Market observers also cautioned that the stock’s valuation remains elevated and noted insider selling, which could temper short-term gains.
On Friday, Morgan Stanley upgraded Rocket Lab to overweight from equal weight and raised its price target to $105 from $67. The firm also introduced an “attractive industry view” on the space technology sector for 2026, saying favorable trends that supported 2025 performance should continue into the new year.
Rocket Lab has maintained momentum with repeated successful Electron launches and steady progress on its Neutron launch vehicle, which investors view as reinforcing the company’s operational development. The broader space sector showed robust growth driven by policy support and increased launch activity, which was highlighted as benefiting companies including Rocket Lab and SpaceX.
Other Wall Street firms were more mixed: Needham issued a Buy rating with a $90 target, while Cantor Fitzgerald kept an Overweight rating and a $54 target. Some of these targets imply a decline from the current $97 stock price mentioned in market commentary.
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