Rocket Lab (RKLB) has steadily risen as a compelling presence in the aerospace industry, capturing the attention of both investors and analysts alike. So far this year, the stock has risen 74%, reflecting growing confidence in the company’s vision and operational execution.
Two major developments have amplified the spotlight on RKLB stock. First, the company completed a $275 million acquisition of Geost, a specialist in electro-optical and infrared sensor systems, strengthening its capabilities for government and defense-related space projects. Second, several analysts raised their price targets following the company's latest earnings release, signaling renewed optimism around future growth.
Needham, for example, maintained a “Buy” rating while projecting non-GAAP operating margins to reach breakeven by the fourth quarter of 2026. The firm's rating and $55 price target were based on management’s confidence in consistent revenue expansion and margin improvement.
As Rocket Lab executes ambitious plans and builds a robust backlog of contracts, RKLB continues to gain traction. That leaves investors to wonder whether the stock has the momentum to climb toward the $55 mark in 2025, making it one of the more closely watched names in the space economy.
About Rocket Lab Stock
Rocket Lab is based out of Long Beach, California, and has steadily built itself into an end-to-end space solutions company. Its operations cover the design, production, and launch of small and medium-class rockets, spacecraft, spacecraft components, and the software needed to manage these systems.
With a market capitalization of approximately $20.4 billion, the company has attracted significant investor attention for both its commercial ventures and its growing role in government and national security projects.
Over the past 52 weeks, RKLB stock has soared 659%, with a remarkable 75% climb in the last three months alone, underscoring the market’s recognition of its accelerating momentum.
Trading at 45 times sales, well above the industry average, the stock reflects investor confidence in Rocket Lab’s ability to convert innovation into tangible growth, signaling expectations of continued market leadership.
Rocket Lab Surpasses Q2 Earnings
On Aug. 7, Rocket Lab released its fiscal Q2 2025 results, which showed revenue rising 36% to $144.5 million, surpassing analyst estimates of $135 million. The beat was fueled in part by five Electron missions during the quarter as well as an expanding satellite manufacturing division.
Gross margins showed healthy improvement, with GAAP margin reaching 32.1% and non-GAAP margin climbing to 36.9%, marking notable year-over-year (YOY) increases. Despite this progress, net loss widened by 59.5% to $66.4 million, marking the continuation of a five-year streak of losses.
Loss per share widened to $0.13 during the quarter, missing consensus expectations for an $0.11 loss. Management underscored that these losses are deliberate investments in the company's Neutron rocket program and other strategic expansions, designed to position Rocket Lab for sustainable long-term growth. Rocket Lab's backlog remains strong at $1 billion, representing a balanced mix of government and commercial contracts.
Looking ahead, Rocket Lab projects Q3 revenue between $145 million and $155 million, with non-GAAP gross margins ranging from 39% to 41%.
Meanwhile, analysts expect Q3 2025 loss per share of $0.10, while the full fiscal-year 2025 loss is anticipated to widen 11% to $0.42. For fiscal 2026, however, the outlook improves, with expected losses narrowing 57% to $0.18 per share.
What Do Analysts Expect for Rocket Lab Stock?
Analyst sentiment around Rocket Lab has turned increasingly positive, driven by operational execution and strategic developments. Deutsche Bank recently raised its price target on RKLB stock to $45 from $27 while maintaining a “Buy” rating, highlighting confidence in the company’s revenue growth and margin expansion. KeyBanc analyst Mike Leschock also increased his price target to $50 from $40 on stronger-than-anticipated margins and steady Neutron rocket program progress.
Analysts assign RKLB an overall rating of “Moderate Buy.” Of the 15 analysts covering RKLB stock, eight rate it a “Strong Buy,” one gives a “Moderate Buy" rating, and six recommend to “Hold.”
RKLB stock already trades above its average price target of $43.85, while Needham maintains the Street-high target of $55, indicating potential upside of 24% from current levels.
