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Rocket Lab Soars: Morgan Stanley Ignites Stock Surge
16 Jan
Summary
- Morgan Stanley upgraded RKLB stock to 'Overweight' with a $105 price target.
- The space technology sector is expected to grow through 2026.
- Rocket Lab secured an $816 million contract from the US Space Development Agency.
Rocket Lab USA shares experienced a significant surge, climbing over 8% following a notable upgrade from Morgan Stanley. The financial firm elevated its rating on the company to 'Overweight' and substantially increased its price target to $105, signaling strong confidence in RKLB's future performance.
This upgrade is underpinned by Morgan Stanley's favorable "Attractive industry view" for the space technology sector through 2026. Key drivers identified include higher launch frequencies, the introduction of new products, supportive policies, and the overall maturation of the market.
Rocket Lab's operational achievements in 2025, including 21 successful Electron rocket launches and nearly 40% revenue growth, contributed to its stock tripling over the year. Further bolstering investor confidence, the company recently secured its largest contract to date: an $816 million agreement with the US Space Development Agency for satellite development.
