Citi Lifts Rocket Lab Target to $50 on Neutron Momentum and Government Contracts

Rocket Lab USA, Inc. (NASDAQ:RKLB) is one of the best space stocks to buy according to hedge funds. Fresh off a Citi analyst report earlier in July, Rocket Lab’s stock got a solid thumbs-up. Citi’s Jason Gursky maintained a Buy rating and boosted the 12-month price target from $33 to $50, citing the company’s impressive Neutron development and expanding satellite-systems business.

Gursky’s note doesn’t just toss around optimism – it’s backed by a detailed shift in valuation: moving the revenue forecast timeline from 2027 to 2029, projecting ~$2.6 billion in revenue driven by 20 Neutron launches annually, plus robust satellite contracts, especially from U.S. government programs. Citi’s model even factors in ~$50 M in recurring revenue from the pending Geost acquisition, set to close in H2 2025.

Rocket Lab USA, Inc. (NASDAQ:RKLB) was founded in New Zealand and now operates out of California. Rocket Lab is primarily known for the small rocket Electron, which is cheap and quick to manufacture and set up, and is also partially reusable. Rocket Lab has successfully carved out a niche for itself in the industry. Small rockets are much more suitable for responsive missions, and while the cost per kilogram is obviously higher than larger rockets, it is offset by agility.

The company has successfully attracted small-satellite-business customers that want tailored mission profiles or don’t want to wait for rideshare to fill up in larger rockets. Furthermore, the company’s Neutron rocket is set to be an alternative to SpaceX’s Falcon9.

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