Shares of Rocket Lab (NASDAQ:RKLB) gained over 15% in Thursday’s after-hours of trading. This spike in RKLB stock follows the announcement that its subsidiary, Rocket Lab National Security, secured a substantial $515 million contract from a United States government customer. The contract involves the manufacturing and operation of 18 space vehicles.
Rocket Lab is an end-to-end space company providing launch services, spacecraft components, satellite manufacture, and on-orbit management solutions.
While the new contract win is a positive development, leading to an appreciation in its share price, let’s assess the year-to-date performance of RKLB stock.
Rocket Lab Stock Performance
It’s noteworthy that this penny stock (learn more about penny stocks here) is up about 17.5% year-to-date. However, it has given up a significant portion of its gains after the company announced the postponement of a previously scheduled Electron mission in September. The delay affected its Q3 revenue and gross margin.
Nevertheless, Rocket Lab achieved a recent milestone by launching its 42nd Electron rocket and successfully deploying a satellite for a Japan-based Earth imaging company. This marked Rocket Lab’s 10th Electron launch for the year and exceeded its previous annual record of nine launches in 2022.
Looking ahead, the company expects its top line to improve quarter-over-quarter in Q1 of 2024. Further, the strong growth in Electron bookings for 2024 and RKLB’s solid history of successful launches position it well to deliver improved financials.
What is the Future Price of RKLB Stock?
Wall Street analysts are bullish about RKLB’s prospects. Five analysts cover Rocket Lab stock, and all recommend a Buy, leading to a Strong Buy consensus rating. Further, analysts’ average price target of $8.20 implies 85.10% upside potential from current levels.
