Rocket Lab slips with other momentum stocks despite DOD hypersonic test deal, new analyst “buy” call
Rocket Lab slipped early Thursday along with other momentum stocks, despite announcing a new $190 million deal for 20 tests of hypersonic rockets for the Department of Defense and picking up a new bullish analyst call.
The commercial space launch company called the deal to launch 20 hypersonic test flights over a four-year period in collaboration with Kratos Defense its “single largest launch agreement yet.”
Separately, analysts at brokerage firm Clear Street initiated coverage of Rocket Lab with a “buy” rating and an $88 price target — essentially the same as Wall Street’s $88.38 consensus, according to FactSet. That implies upside of about 27% for the stock compared to yesterday’s close. Clear Street analysts wrote:
“Despite shares rising 289% (vs. 26% for the NASDAQ) over the past year, we see further upside. Our $88 target is based on 20x 2030E EV/Sales, in line with the ~30x NTM EV/Revenue average over the past year when discounted to present value. We anchor on 2030E to capture the payoff from ~16 annual Neutron launches following a multi-year investment cycle. Our outlook incorporates estimated dilution and proceeds from the $1B equity distribution agreement announced on 3/17/2026.”
The favorable headlines for Rocket Lab weren’t enough to help the shares overcome a general downdraft for high-beta momentum stocks such as itself. They are getting hammered early on the deteriorating situation in the Mideast war.
Separately, analysts at brokerage firm Clear Street initiated coverage of Rocket Lab with a “buy” rating and an $88 price target — essentially the same as Wall Street’s $88.38 consensus, according to FactSet. That implies upside of about 27% for the stock compared to yesterday’s close. Clear Street analysts wrote:
“Despite shares rising 289% (vs. 26% for the NASDAQ) over the past year, we see further upside. Our $88 target is based on 20x 2030E EV/Sales, in line with the ~30x NTM EV/Revenue average over the past year when discounted to present value. We anchor on 2030E to capture the payoff from ~16 annual Neutron launches following a multi-year investment cycle. Our outlook incorporates estimated dilution and proceeds from the $1B equity distribution agreement announced on 3/17/2026.”
The favorable headlines for Rocket Lab weren’t enough to help the shares overcome a general downdraft for high-beta momentum stocks such as itself. They are getting hammered early on the deteriorating situation in the Mideast war.
