Rocket Lab Stock Eyes Rebound After Bullish Coverage

Rocket Lab Corp (NASDAQ:RKLB) stock is up 1.7% before the bell, last seen at $69.55, after Barclays initiated coverage with an "overweight" rating and $85 price target. The aerospace and defense name is also getting attention after Cathie Wood's ARK Investment Management suggested its upcoming Neutron rocket could become a viable alternative to SpaceX's Falcon 9. TD Cowen also threw in a price-target cut to $90 from $120, however.

Rocket Lab stock is looking to recover from yesterday's 4.9% drop, which marked its second consecutive daily loss. The shares are down 2% in 2026 and have shed 17.1% over the past three months, pulling back significantly from their May 27 record high of $151. Several moving averages linger overhead as potential resistance, including the 120-day moving average, which kept a firm ceiling on gains in August.

A short squeeze could provide additional tailwinds for RKLB. Short interest accounts for 7.3% of the equity's available float, and it would take more than two days to cover these bearish bets, at the stock's average pace of trading.

Options traders have also been more bullish than usual. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and Nasdaq OMX PHLX (PHLX), RKLB's 50-day call/put volume ratio of 3.31 ranks higher than all other readings in its annual range.

RKLB's Schaeffer's Volatility Index (SVI) of 61% ranks in the lowest percentile of its annual range, suggesting options traders are pricing in relatively low volatility expectations at the moment. The stock also sports a Schaeffer's Volatility Scorecard (SVS) of 96 out of 100, indicating RKLB has consistently exceeded options traders' volatility expectations during the past year.