Rocket Lab Stock Hits Record High After Citi Hikes Target Citing Neutron Momentum And Government Demand

Citi’s analysts cited strong momentum across the aerospace and defense sector heading into second-quarter earnings and highlighted Rocket Lab’s progress on its reusable Neutron rocket and satellite systems business.

Shares of Rocket Lab USA (RKLB) jumped more than 10% Monday morning, reaching an all-time high of $42.88 after Citi raised its price target and reiterated a ‘Buy’ rating.

Citi hiked its target to $50, up from $33, and kept a ‘Buy’ rating on Rocket Lab’s stock, according to TheFly. It implies a potential upside of 16% from its record high of $42.88.

Rocket Lab’s stock has gained 65% so far this year and 653% over the past 12 months. Citi’s analysts cited strong momentum across the aerospace and defense sector heading into second-quarter (Q2) earnings and highlighted Rocket Lab’s progress on its reusable Neutron rocket and satellite systems business.

Citi estimates Rocket Lab’s annual revenue could reach $2.6 billion by 2029, driven by 20 Neutron launches per year and growing satellite contracts, especially from U.S. government programs. 

The firm’s model also includes $50 million in recurring annual revenue from Rocket Lab’s planned acquisition of Geost, which is expected to close in the second half of 2025.

The rally comes after Rocket Lab was awarded a contract to build a floating ocean platform for its Neutron rocket with Bollinger Shipyards last week. The platform, named ‘Return On Investment,’ is being modified in Louisiana and is expected to be delivered by early 2026.

Rocket Lab’s stock price also raced past KeyBanc’s recent price target of $40, citing sustained growth in Rocket Lab’s Launch Services and Space Systems segments. The brokerage said Rocket Lab is well-positioned to win a share of the Space Development Agency’s next major contract and noted the company’s ramp-up in Archimedes engine production as a positive technical milestone.

On Stocktwits, retail sentiment around Rocket Lab’s stock has remained in ‘bullish’ territory over the past week, with chatter jumping to ‘high’ levels.

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