Why Is Rocket Lab Stock Soaring Today?

Rocket Lab Corp. (RKLB) shares soared 5% in Monday morning’s trade after Morgan Stanley raised its price target for the company.

According to TheFly, Morgan Stanley expressed optimism about Rocket Lab’s upcoming medium-class launcher, Neutron, nearing its entry into service. The firm raised its price target on the stock to $68 from $20, implying an upside of nearly 6% from the closing price of the shares on Friday.

The firm noted that the Neutron program’s initial launch is the next major driver for the Rocket Lab stock.

Retail sentiment on Stocktwits around Rocket Lab trended in the ‘bullish’ territory at the time of writing.

In its note, Morgan Stanley called Rocket Lab an “earlier-stage alternative” to Elon Musk’s SpaceX, while adding that the company’s new valuation “takes cues” from SpaceX’s implied value. The firm maintained its ‘Equal Weight’ rating on the stock, while adding that after Rocket Lab’s surge in 2025 so far, “much appears priced in” at the current valuation.

Last week, Rocket Lab secured two dedicated launch agreements with the Japan Aerospace Exploration Agency (JAXA). The missions, both set to launch from Rocket Lab’s New Zealand-based Launch Complex 1, will support JAXA’s Satellite Technology Demonstration Program.

The first launch, expected to occur in December 2025, will carry the agency’s RAISE-4 satellite into orbit to showcase eight experimental technologies from a mix of Japanese academic institutions and private-sector firms. The second launch is slated for 2026 and will carry a collection of eight payloads, including educational satellites, an ocean-monitoring system, and a technology demonstration of an origami-inspired deployable antenna capable of expanding 25-fold once in space.

The company also signed a multi-launch deal with the Institute for Q-shu Pioneers of Space.

RKLB stock is up 161% year-to-date and 586% in the last 12 months.

Also See: Bloom Energy Shares Soar On $5 Billion Brookfield Deal To Deploy Its Fuel Cells To Power AI Data Centers

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