Is Rocket Lab (RKLB) Stock a Buy After Its 6% Pullback? Analysts Think So

TLDR

• Analysts have an average price target of $89.36 on RKLB, implying ~33% upside from current levels
• Rocket Lab won a $190M DoD contract for hypersonic test flights, pushing its backlog past $2 billion
• Clear Street initiated coverage with a Buy rating and $88 price target
• Neutron rocket components are ready for final assembly, with launch expected in Q4 2026
• Insiders sold over $136M worth of stock in the last 90 days, raising some dilution concerns

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Rocket Lab (RKLB) is down around 6.5% recently, trading at $67.23. But Wall Street isn’t hitting the panic button.

Rocket Lab USA, Inc., RKLB

Analysts have an average price target of $89.36 on the stock — about 33% above current levels. Nine analysts rate it a Buy, four say Hold.

The sell-off comes despite a string of positive developments for the company. Geopolitical tensions in the Middle East have weighed on aerospace and defense stocks broadly, pulling RKLB lower in the short term.

The biggest recent news is the $190 million contract from the U.S. Department of Defense. The deal covers up to 20 HASTE hypersonic test launches — and it’s the largest launch contract in Rocket Lab’s history. CEO Sir Peter Beck called it a “proud moment.”

That contract pushed Rocket Lab’s total backlog past $2 billion. That’s a meaningful pipeline of near-term revenue.

Rocket Lab also completed its 84th Electron launch — its 8th mission for Synspective. The successful flight reinforces the company’s launch cadence and its recurring relationships with constellation customers.

Neutron Rocket Moves Closer to Launch

The Neutron rocket is the big long-term story here. The 43-meter, partially reusable vehicle is built for satellite constellations and cargo missions. It puts Rocket Lab in direct competition with SpaceX’s Falcon 9.

Key components — including the “Hungry Hippo” fairing and thrust structure — are now ready for final assembly. Launch is expected in Q4 2026, following a manufacturing delay that pushed it back slightly.

Clear Street analyst Gregory Pendy just initiated coverage with a Buy rating and an $88 price target. He flagged Rocket Lab’s in-house approach as a competitive edge, and expects Electron launches to scale to around 52 per year by 2030.

Cantor Fitzgerald’s Andres Sheppard also reiterated his Buy rating with an $85 target, calling the first Neutron launch the st important upcoming catalyst for the stock.

Insider Sales Raise Eyebrows

Not everything is pointing up. Insiders have been selling. CFO Adam Spice sold 62,744 shares at $69.59 in early March, a 4.61% reduction in his stake. Insider Frank Klein sold 36,768 shares at $71.95 shortly after.

In total, insiders have offloaded over 1.81 million shares worth around $136.5 million in the past 90 days. That’s caught the attention of investors watching for dilution risk, especially alongside a recent equity raise.

On the institutional side, the picture looks different. Swiss Life Asset Management increased its position by 480.9%, buying 48,369 shares. AQR Capital boosted its stake by 114%. Overall, institutions own 71.78% of the stock.

Morgan Stanley upgraded RKLB from Equal Weight to Overweight in January, lifting its price target to $105. Needham holds a Buy with a $95 target. Zacks moved to Hold in February.

RKLB’s 52-week range sits between $14.71 and $99.58. Its 50-day moving average is $76.31.

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