Rocket Lab Gets New Street-High Price Target from Citi

Rocket Lab USA (NASDAQ: RKLB) defies gravity, literally and figuratively. Already one of 2025’s hottest stocks, Rocket Lab is now up over 75% year-to-date and has exploded more than 730% over the past twelve months. And if recent analyst sentiment is any indication, the rally may be far from over.

This week, Citigroup delivered yet another bullish catalyst for the space and defense company, raising its price target on RKLB to a new Street-high of $50, up from $33. The firm also reiterated a Buy rating, citing Rocket Lab’s growing commercial pipeline, expanding government contracts, and substantial revenue potential over the next several years.

Citi Sees Major Revenue Boost on the Horizon

Citi's latest note makes a compelling case for RKLB’s upside. The analysts project as much as $2.6 billion in revenue over the next four years, driven by an estimated 20 Neutron launches and new satellite construction deals tied to U.S. government programs.

The firm emphasized the strength of Rocket Lab’s positioning across its launch services and satellite systems businesses, which now form a vertically integrated space platform few competitors can match.

This bullish outlook adds fuel to a fire already stoked by accelerating momentum. Rocket Lab’s Neutron rocket development continues to progress, and with its inaugural launch still expected by the end of the year, investor anticipation is mounting. Neutron, Rocket Lab’s answer to SpaceX’s Falcon 9, is designed as a reusable, medium-lift rocket, which would open the company to a significantly larger addressable market.

From Niche Player to Sector Leader

Rocket Lab has firmly established itself as a sector leader, evolving from a small satellite launch company into a full-stack space and defense contractor. Its Electron rocket remains one of the world's most reliable small launch vehicles, with 68 successful missions under its belt. However, the company’s ambitions clearly extend well beyond the launchpad.

In recent months, RKLB has secured a series of high-profile contracts, including multimillion-dollar deals with the U.S. Space Development Agency and a key European Union mission. These wins validate its growing relevance in global defense and national security infrastructure.

Coupled with strategic acquisitions, such as GEOST, which brings space-based sensing and payload capabilities in-house, Rocket Lab is positioning itself as a go-to partner for both government and commercial missions.

Technical Momentum Points Higher

While fundamentals continue strengthening, the stock’s technical picture reflects bullish sentiment. RKLB is currently trading near all-time highs, with momentum firmly to the upside. Tuesday’s close left the stock’s Relative Strength Index (RSI) at 81, well into overbought territory.

For investors sitting on the sidelines, this could signal that a near-term pullback is possible before the next leg of the upward trend.

Key technical support levels to watch include $40 and $35, both prior breakout zones that may serve as attractive entry points if the stock cools off.

Still, for longer-term investors who believe in Rocket Lab’s growth story, trying to time the perfect entry may not be necessary.

The company’s strategic progress, improving execution, and rapidly expanding revenue base suggest that any dips could be buying opportunities within a broader uptrend.

Becoming a Household Name in Space and Defense

Rocket Lab’s meteoric rise is no longer going unnoticed. What was once a lesser-known player in the space industry quickly became a household name among institutional investors and retail traders. With Neutron development heating up, satellites rolling off the line, and Wall Street analysts increasingly bullish, RKLB’s transformation into a mainstream growth story is underway.

And if Citi’s new $50 price target proves accurate, there’s still meaningful upside from here.

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