Rocket Lab Stock Gains Bullish New Coverage, Price Target Set at $83

Rocket Lab's stock (NASDAQ: RKLB) has attracted a lot of attention in recent weeks, with gains of 46.6% in the past month extending the YTD rally to 177.5%. The momentum trade continues unabated for now, and new positive analyst coverage from Baird, initiating coverage with an “Outperform” rating is likely to add further interest this morning.

RKLB is currently trading at $70.32 in the pre-market, up 1.52% in the session, and considerably below the new bullish target placed by Baird. The stock has demonstrated significant upward momentum, driven by confidence in the company's growth trajectory and strategic positioning within the aerospace sector. 

Baird initiated coverage with an “Outperform” rating and an $83 price target, highlighting Rocket Lab's established position as a reliable space launch provider, underscored by its 94% mission success rate. The firm projects a 34% compound annual growth rate (CAGR) in revenue through 2030, driven by the upcoming Neutron rocket, which is expected to compete directly with SpaceX's Falcon 9 in the medium-lift market.

Rocket Lab's strategic partnerships and contract wins have further solidified its market position. A recent partnership with the European Space Agency (ESA) to launch two pathfinder satellites for a future navigation constellation in late 2025 signifies the company's expanding footprint in the European market. Additionally, Rocket Lab was selected by the U.S. Air Force for the Enterprise-Wide Agile Acquisition Contract (EWAAC), a $46 billion program, underscoring its growing role in national defense initiatives.

In the third quarter of 2025, Rocket Lab reported a loss of $0.10 per share, better than the anticipated loss of $0.11. Revenue for the quarter reached $104.8 million, a 55% increase from the previous year, surpassing analysts' expectations of $102 million. This financial performance reflects the company's ability to execute its growth strategy and capitalize on increasing demand for space launch services.

The market’s bullish sentiment towards Rocket Lab appears to be heavily influenced by the anticipated launch of the Neutron rocket and the company's ability to secure significant contracts. The company's expansion into the medium-lift market and its growing involvement in national defense initiatives are expected to drive further growth in the coming years. Despite this, the company is yet to turn a profit, and sooner or later, markets will begin to look for that to change.