This Space Stock Has Jumped Over 300% In A Year – But Analyst Sees ‘Solid Upside’

• Rocket Lab’s expansion into defense, spacecraft manufacturing, and integrated space systems is seen as a key growth driver.
• Citizens set an $85 price target, highlighting a more favorable risk-to-reward profile for investors.
• Citizens said the company could benefit from rising government contracts and increased global investment in space infrastructure.

Rocket Lab USA Inc. (RKLB) is emerging as a serious counterpart to SpaceX, signaling a shift toward a two-player dynamic in orbital services and infrastructure.

On Tuesday, Citizens analysts upgraded Rocket Lab to ‘Outperform’ from a prior ‘Market Perform’ rating, citing improving fundamentals and a stronger outlook for higher-margin services, according to TheFly. 

Citizens Sees Improved Risk-Reward With $85 Price Target

The space technology firm, known for its launch capabilities and expanding defense and space systems portfolio, is increasingly viewed as well-positioned within a rapidly evolving space economy.

Citizens assigned a price target of $85, citing a more attractive risk-reward balance as the company diversifies its offerings and strengthens its foothold in the sector.

Rocket Lab stock traded over 1% higher in Tuesday’s premarket. RKLB stock has gained over 313% in the last 12 months.

On Stocktwits, retail sentiment around the stock flipped to ‘bearish’ from ‘bullish’ amid ‘high’ message volume levels. 

Push Toward Lucrative Service Segments

Citizens emphasized that Rocket Lab’s progress beyond launch services into defense and advanced space systems, such as building spacecraft, components, and software, is a critical factor supporting the upgrade. The company’s push toward more lucrative service segments is expected to enhance revenue quality and drive sustained growth.

The firm also highlighted supportive geopolitical dynamics and increased government and private funding for the space sector, creating a conducive environment for expanding operations and securing contracts. 

Citizens expects a ‘solid upside potential’ for Rocket Lab over the next 12 months and beyond, driven by its evolving business model and strengthening market position.

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