Rocket Lab Corporation (NASDAQ:RKLB) shares are trading lower Thursday after Keybanc analyst Michael Leshock downgraded Rocket Lab from an Overweight rating to a Sector Weight rating.
KeyBanc Says Growth Catalysts Are Priced In
The downgrade reflects the view that many of Rocket Lab's aggressive, multi-year growth catalysts have already been realized and are now broadly recognized and reflected in the stock's current valuation.
KeyBanc said it continues to view Rocket Lab as one of the highest-quality companies in the space sector but believes the stock's risk-reward profile appears balanced in the near to medium term. The firm said its estimates for the company remain unchanged.
The analyst highlighted several milestones achieved over the past 6–12 months, including an $816 million contract award for SDA Tranche 3 in December 2025, the opening of the LC-3 launch pad at Wallops Island in August 2025, consistent testing and production progress for the Archimedes engine, and a late-2025 executive order supporting U.S. space dominance.
KeyBanc also cited broader developments supporting the space sector, including increased attention following SpaceX's announced intentions to pursue an IPO and the appointment of Jared Isaacman as NASA administrator in December 2025.
Despite the downgrade, the firm said it could become more constructive on Rocket Lab shares with improved visibility into the timing of Neutron's first launch, additional large contract awards, stronger-than-expected space systems growth, or further clarity around long-term services opportunities.
The Technical Picture
Rocket Lab is currently trading 18.8% above its 20-day simple moving average (SMA) and 57.5% above its 100-day SMA, indicating strong short-term and long-term bullish trends. Over the past 12 months, shares have skyrocketed by 253.72%, and they are currently positioned closer to their 52-week highs than lows, reflecting sustained strength.
The RSI is at 73.57, indicating that the stock is in overbought territory, which may suggest a potential pullback if momentum wanes. Meanwhile, the MACD is above its signal line, reinforcing the bullish outlook for the stock.
The combination of an overbought RSI and a bullish MACD suggests that while the stock is currently strong, traders should remain cautious of potential corrections.
Benzinga Edge Rankings
Below is the Benzinga Edge scorecard for Rocket Lab Corporation Common Stock (RKLB), highlighting its strengths and weaknesses compared to the broader market:
- Momentum: Bullish (Score: 98.22/100) — Stock is outperforming the broader market.
The Verdict: Rocket Lab Corporation Common Stock’s Benzinga Edge signal reveals a strong momentum setup. The high momentum score indicates that the stock is currently in a favorable position, suggesting that traders may want to capitalize on this upward trend.
RKLB Price Action: At the time of writing, Rocket Lab shares are trading 2.98% lower at $89.06, according to data from Benzinga Pro.
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