Why Rocket Lab (RKLB) Stock Is Trading Up Today

What Happened?

Shares of aerospace and defense company Rocket Lab (NASDAQ:RKLB) jumped 4.1% in the afternoon session after it got positive commentary from Wall Street, including a price target increase from Roth Capital. On Monday, Roth Capital raised its price target on the stock to $60 from $50, while maintaining a “Buy” rating. The analyst noted impressive progress toward the initial launch of the company's Neutron rocket and strong Q2 2025 results, which included record revenue and gross margin expansion. The firm's increased confidence in the Neutron program supports its bullish thesis for the stock. This optimistic sentiment is echoed across Wall Street, as other firms like Needham, Cantor Fitzgerald, and Keybanc also recently raised their price targets following the company's solid operational performance.

After the initial pop the shares cooled down to $47.63, up 3.9% from previous close.

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What Is The Market Telling Us

Rocket Lab’s shares are extremely volatile and have had 75 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 13 days ago when the stock gained 3.7% on the news that the company announced it will receive a $23.9 million award under the CHIPS and Science Act and is opening its new Neutron launch complex this week. The stock's upward trend is fueled by a series of positive developments. The government funding is designated to expand U.S. manufacturing capacity for space-grade solar cells and electro-optical sensors, which are critical for national security missions. Adding to the bullish sentiment, Rocket Lab is also set to open its Neutron launch complex in Virginia, a key step toward the first flight of its larger, reusable rocket targeted for before the end of the year. The news follows the company's 70th successful Electron mission over the weekend and the recent acquisition of Geost, a developer of advanced sensor payloads, further enhancing its position as a key contractor for U.S. defense projects.

Rocket Lab is up 90.8% since the beginning of the year, and at $47.63 per share, it is trading close to its 52-week high of $51.39 from July 2025.

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