Rocket Lab Stock (RKLB) Charting Course For Breakout as Price Target Raised

Rocket Lab's stock (NASDAQ:RKLB) is capturing quite the amount of market attention in recent weeks, as contract wins and bullish upgrades from Wall St add fuel to what has been a huge year for RKLB bulls. The recent stock price momentum suggests a breakout is on the cards, which has been supported with a price target hike from Stifel.

The stock has been building up a head of steam, recapturing the $70 level with a 17.69% gain to close out the previous trading week. This bullish move has been taking shape over the past month, with Rocket Labs' stock price adding an impressive 66.12%. 

Zooming out a little to the year-to-date, and RKLB has put up 182% in gains, with pre-market trading putting the stock a further 5% higher, with a triple in sight.

Stifel has raised its price target on Rocket Lab to $85 from $75, reiterating a Buy rating. This adjustment follows the company securing a contract from the Space Development Agency (SDA) to construct 18 satellites for the T3TRK program, a deal potentially valued at up to $805 million.

The firm noted that this represents Rocket Lab’s largest contract to date and signifies another meaningful win for the company.

The base value of this contract is $806 million, supplemented by options worth $10.45 million. These satellites will feature advanced sensors designed to detect emerging threats, including hypersonic systems, enhancing national security capabilities.

The company's strong Q3 2025 results also contributed to the positive sentiment. Stifel initially raised its price target to $75 in November, citing a 48% year-over-year revenue growth. The Electron rocket program added 17 launches to its backlog, valued at approximately $145 million, with average selling prices trending higher.

Operationally, Rocket Lab has achieved significant milestones. The company completed 21 Electron launches in 2025 with a 100% mission success rate. Furthermore, progress continues on the Neutron rocket, with the first launch scheduled for 2026. This development is expected to expand Rocket Lab's capabilities into medium-lift launches, further diversifying its service offerings.

Rocket Lab's recent achievements, including substantial contract wins, robust financial performance, and operational successes, have collectively strengthened market confidence leading in to the year end. The company's positioning in the space industry, coupled with ongoing advancements in satellite manufacturing and launch services has given the stock plenty of followers. Maintaining this momentum on a breakout into the new year could well prove the near term test.