Rocket Lab (RKLB) Stock: Citi Sees 51% Upside, Here’s Why

TLDR

• Citi initiated coverage on Rocket Lab (RKLB) with a Buy rating and a $105 price target, implying 51% upside.
• Analyst John Godyn called RKLB a “core holding for space bulls.”
• RKLB stock rose about 3% at Thursday’s open following the rating and a new contract announcement.
• Rocket Lab signed a 20-launch deal with Synspective, its largest-ever commercial Electron agreement.
• The new deal pushes Rocket Lab’s total launch backlog above 100 missions.

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Rocket Lab (RKLB) stock climbed about 3% at Thursday’s market open. The move followed a new Buy rating from Citi and news of a large contract win.

Rocket Lab USA, Inc., RKLB

Citi analyst John Godyn started coverage of RKLB with a Buy rating and a $105 price target. That target implies roughly 51% upside from the stock’s prior closing price.

Godyn described Rocket Lab as a “core holding for space bulls.” He pointed to the company’s position across launch services and spacecraft technology.

Rocket Lab operates in several corners of the space economy. This includes rocket launches, spacecraft components, and launch infrastructure.

Citi Points to Electron and Vertical Integration

Godyn said Rocket Lab is one of the only companies providing regular commercial access to orbit. He highlighted the Electron rocket as proof of that track record.

The analyst also flagged Rocket Lab’s vertical integration. This lets the company earn revenue beyond just launches, spreading its business across multiple segments of the space industry.

Citi’s rating arrived just after Rocket Lab announced its biggest-ever commercial Electron contract. The company signed a multi-year deal with Synspective, an Earth observation firm based in Tokyo.

The agreement covers 20 Electron launches. Rocket Lab will deploy Synspective’s StriX synthetic aperture radar satellites into sun-synchronous orbit.

Launches under the deal are scheduled between 2028 and 2031. They will launch from Rocket Lab’s Launch Complex 1 in New Zealand.

Backlog Tops 100 Missions

The new contract brings Synspective’s total booked Electron missions to 47. That makes Synspective the largest customer in Rocket Lab’s history by mission count.

Rocket Lab said this deal, combined with other multi-launch agreements signed this year, has pushed its total launch backlog above 100 missions. That gives the company longer-term visibility on its Electron business.

Rocket Lab founder and CEO Peter Beck commented on the deal. He said satellite operators looking for more control over their missions often turn to Rocket Lab.

Beck noted Synspective was one of Electron’s earliest customers. He said the expanded deal reflects confidence in Electron’s launch pace and accuracy.

Rocket Lab is also working on Neutron, its larger reusable rocket, while Electron continues to generate steady business. The two programs are running in parallel rather than one replacing the other.

According to TipRanks, RKLB carries a Strong Buy consensus rating. That’s based on 14 Buy ratings and two Hold ratings over the past three months.

The average analyst price target on Rocket Lab sits at $110.07. That figure suggests about 56% upside from current levels, slightly higher than Citi’s own target.

Financial terms of the Synspective agreement were not disclosed by either company.