Shares in Rocket Lab climbed on Friday in U.S. trading after the company announced a major defense contract and received a stock forecast upgrade. Investors reacted to the contract award and the broker upgrade.
Rocket Lab said it secured an $816 million Space Development Agency Tranche 3 Tracking Layer contract covering 18 satellites. (Ed. note: This represents the largest single award in Rocket Lab‘s history.)
The deal will outfit satellites with missile-warning and tracking sensors. Analysts said it positions Rocket Lab as a prime contractor for future programs, including Golden Dome.
Other observers cautioned the stock’s valuation remained elevated and noted insider selling might limit near-term gains.
Morgan Stanley upgraded Rocket Lab to overweight from equal weight on Friday. It introduced an “attractive industry view” for 2026 and raised its price target to $105 from $67.
Rocket Lab has sustained momentum with repeated successful Electron launches and steady Neutron progress. Policy support and more launch activity have boosted firms including Rocket Lab and SpaceX.
Needham issued a Buy rating with a $90 price target, while Cantor Fitzgerald remained Overweight with a $54 target. Commentary noted those targets contrast with the stock’s current $97 price and could imply declines during 2026.
