Rocket Lab Stock In Spotlight After Kratos Selects Firm To Deliver Hypersonic Test Launches For DoD: Retail Mood Improves
By Stocktwits Inc | First Published Jan 8, 2025, 8:33 PM ISTRocket Lab will join the Kratos-led team of subcontractors that will provide systems engineering, assembly, integration, and test (AI&T), mission planning and execution, and launch services.
Aerospace manufacturer and launch service provider Rocket Lab USA Inc (RKLB) shares were in the spotlight on Wednesday after the firm was selected by Defense & Security Solutions, Inc. (KTOS) to deliver hypersonic test launches for the Department of Defense (DoD).
Rocket Lab will join the Kratos-led team of subcontractors that will provide systems engineering, assembly, integration, and test (AI&T), mission planning and execution, and launch services.
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Rocket Lab highlighted that Kratos was awarded a five-year OTA contract for the Multi-Service Advanced Capability Hypersonic Test Bed (MACH-TB) 2.0 under Task Area 1, with a total potential value of $1.45 billion over five years.
The firm said it has already served the MACH-TB program and delivered multiple successful hypersonic test launches with its HASTE (Hypersonic Accelerator Suborbital Test Electron) rocket — a suborbital variant of Rocket Lab’s Electron launch vehicle. The firm claims it is the United States’ second most frequently launched orbital rocket annually.
Meanwhile, Stifel analyst Erik Rasmussen raised the firm's price target on Rocket Lab to $31 from $26 while keeping a ‘Buy’ rating on the shares following the selection by Kratos.
According to TheFly, the brokerage highlighted that Rocket Lab has already serviced the MACH-TB program in the past and added that multiple hypersonic test launches through its HASTE rocket are "a good indicator for future opportunities for HASTE missions."
Following the announcement, retail sentiment on Stocktwits jumped into the ‘bullish’ territory (59/100) from ‘neutral’ a day ago, accompanied by high message volume.
Retail users on Stocktwits took note of the developments, and most retail chatter reflected optimism about the stock’s prospects.
Notably, Rocket Lab shares have nearly tripled over the past year, while Kratos Defense & Security Solutions stock has gained 51% during the same period.
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