Rocket Lab (RKLB) shares are gaining attention after the company delivered impressive Q3 results, showcasing solid revenue growth and improved margins. Following the upbeat report, five-star-rated analyst Erik Rasmussen at Stifel Nicolaus raised his price target on RKLB from $65 to $75, implying over 44% upside from current levels.
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For context, Rocket Lab specializes in small satellite launches and spacecraft manufacturing. It’s known for its Electron and Neutron rockets. The company reported a Q3 loss of $0.03 per share, beating estimates of a $0.10 loss. Meanwhile, revenue reached $155.1 million, topping forecasts of $151.8 million.
Stifel Stays Bullish on RKLB
Rasmussen highlighted that Rocket Lab’s revenue topped the high end of its guidance, reflecting an impressive 48% year-over-year growth. He also noted the strong momentum in the Electron rocket program, which added 17 launches to its backlog worth about $145 million, with average selling prices continuing to rise. Notably, the company completed four launches in Q3, bringing its year-to-date total to 16. Overall, the company remains on track for over 20 launches in 2025.
Rasmussen pointed out that management is aiming to have Neutron ready for launch in Q1 2026. He views this as a “more realistic goal,” reflecting Rocket Lab’s focus on mission success over speed.
Even before the results, Rasmussen maintained a bullish outlook on RKLB. He believes the company has benefited from higher average selling prices for its Electron rocket, driven by a stronger product mix. Additionally, he stated the steady growth in its Space Systems division as the Space Development Agency (SDA) program moves into full production.
What Lies Ahead for Investors?
For the next quarter, Rocket Lab expects to surpass its annual launch record and generate revenue between $170 million and $180 million, about 2% above analyst estimates at the midpoint.
Meanwhile, the company’s medium-lift Neutron launch in Q1 2026 marks a major step toward capturing larger and more profitable satellite constellation missions.
For now, the Electron rocket remains the core revenue driver, but Neutron is seen as the next major growth catalyst. Management expressed confidence in the project’s progress while keeping expectations realistic that investors are likely to appreciate.
Is Rocket Lab Stock a Buy?
According to TipRanks, RKLB stock has received a Moderate Buy consensus rating, with nine Buys and four Holds assigned in the last three months. The average stock price target for Rocket Lab is $61.91, suggesting a potential upside of 19.3% from the current level.
