According to the Fly, Citizens said Neutron’s launch delay followed air pockets in its carbon-composite forward dome that failed to meet safety margins, prompting a manufacturing fix and a rebuild.

  • Citizens cut its Rocket Lab price target to $90 from $130 while maintaining a ‘Outperform’ rating.
  • Goldman Sachs and Clear Street lowered their price targets, with Goldman citing higher expenses and cash burn, while Clear Street pushed back its growth and profitability expectations by three quarters.
  • Koyfin data shows 17 of 21 analysts rate RKLB ‘Buy’ or ‘Strong Buy’.

Rocket Lab (RKLB) drew investor attention on Friday after Citizens highlighted the potential impact of Neutron’s delayed first launch on the company’s ability to monetize subsequent launches in fiscal 2027 and 2028.

According to The Fly, Citizens cut its price target to $90 from $130 while maintaining an ‘Outperform’ rating on the shares.

RKLB shares traded 0.45% lower at $55 in premarket trading on Friday, following a 6.64% drop in the previous session. 

Neutron Delay Raises Timing Concerns

Rocket Lab said on Wednesday that Neutron’s inaugural launch is now expected in 2027, instead of the previously planned fourth quarter of 2026.

According to the Citizens note reported by The Fly, air bubbles in the thickened carbon-composite tank failed to meet safety-margin requirements. The manufacturing fix had been validated on a second section, and the rebuild was underway as Rocket Lab prioritized flight safety over schedule.

Wall Street Reacts To Neutron Setback

Citizens’ target cut follows several analyst updates on Thursday after Rocket Lab disclosed the delay.

Goldman Sachs lowered its price target to $67 from $75 while maintaining a ‘Neutral’ rating. The firm now models Neutron’s inaugural launch in the second quarter of 2027, rather than the fourth quarter of 2026, and expects additional expenses and higher cash burn over the next few quarters. Goldman also expects continued customer interest in Neutron, citing the supply-demand imbalance in orbital launch, according to The Fly.

Clear Street lowered its price target to $105 from $129 while maintaining a ‘Buy’ rating. Analyst Greg Pendy said the delay pushes out the firm’s growth and profitability by three quarters, but added that the medium-lift opportunity is “only getting bigger,” according to The Fly.

KeyBanc lowered its price target to $100 from $135 while maintaining an ‘Overweight’ rating. The firm said Rocket Lab had resolved the manufacturing issue, but the time needed to investigate and fix the manufacturing process caused the delay, according to The Fly.

Roth Capital maintained its ‘Buy’ rating and $110 price target. Analyst Suji Desilva said Rocket Lab was prioritizing Neutron’s manufacturing and process quality over speed to the launch pad. Roth added that the front-end-loaded manufacturing and launch-pad infrastructure would enable rapid scaling following initial launch successes, according to The Fly.

Cathie Wood’s ARK Buys The Dip 

Separately, Cathie Wood’s ARK Investment Management bought 168,633 Rocket Lab shares across its ARK Innovation, ARK Autonomous Technology & Robotics, and ARK Space Exploration & Innovation ETFs on Thursday, valued at approximately $9.32 million based on the closing price.

According to Koyfin data, 17 of the 21 analysts covering Rocket Lab rate the stock ‘Buy’ or ‘Strong Buy’.

How Retail Views RKLB

Retail sentiment on Stocktwits remained in the ‘bullish’ territory, amid ‘high’ message volumes over the past 24 hours.

One Stocktwits user suggested that Thursday’s sell-off could mark the worst day for RKLB in 2026, adding that they did not expect the stock to fare worse in the coming months.

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Another user said RKLB could recover Thursday’s losses on Friday, pointing to strong buying volume and a rebound from the session lows.

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RKLB shares have dropped over 20% year-to-date.

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