Rocket Lab Stock Rises as Analyst Reaffirms Target Despite Rocket Delay
Shares of Rocket Lab Corporation (NASDAQ:RKLB) moved higher on Monday, rising more than 3% following analyst backing despite a recently announced launch delay. Cantor Fitzgerald reiterated its Overweight rating and $122 price target on the company, framing the postponed test flight of the larger Neutron rocket as a short-term setback rather than a change to the core investment thesis.
The analyst update follows news from October 14 that Rocket Lab will delay the inaugural flight of Neutron into 2027 due to a manufacturing issue. Management confirmed that the problem involved a propellant dome, which has since been redesigned to clear the production path. Neutron represents a major financial step up for Rocket Lab, carrying an estimated average selling price of $50 million to $55 million per launch, compared to roughly $8.5 million to $10 million for its Electron and Haste rockets.
Investors are also watching Rocket Lab's pending purchase of Iridium Communications Inc. (NASDAQ:IRDM), an $8 billion enterprise value transaction expected to close by mid-2027. Adding Iridium's annual revenue of over $850 million to Rocket Lab's existing sales stream could effectively double the combined company's top line once integrated.
Key points
- Rocket Lab shares gained over 3% as Cantor Fitzgerald kept an Overweight rating and $122 price target.
- Manufacturing issues pushed the debut flight of the Neutron rocket from late this year into 2027.
- Neutron carries an estimated average selling price of $50 million to $55 million per flight.
- The pending $8 billion acquisition of Iridium Communications is expected to close by mid-2027.
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Why is Rocket Lab stock climbing today?
Rocket Lab shares moved higher after Cantor Fitzgerald reaffirmed its bullish rating and $122 price target, viewing the delay of the Neutron rocket as a short-term issue.
When will Rocket Lab launch the Neutron rocket?
The inaugural test flight for Neutron has been shifted into 2027 due to a manufacturing issue with a propellant dome that management has since addressed.
How will the Iridium acquisition impact Rocket Lab?
Acquiring Iridium Communications, which generated over $850 million in fiscal 2025 revenue, is projected to roughly double Rocket Lab's overall revenue after closing in mid-2027.