Key Highlights
- RKLB shares climbed almost 10%, regaining both the 50-day and 20-day moving averages following a ~27% decline from the 52-week peak
- The aerospace firm finalized its $155.3M Mynaric purchase, gaining laser optical communications technology and establishing its first European operations
- Rocket Lab introduced “Gauss,” an innovative electric satellite propulsion system with manufacturing capacity exceeding 200 units annually
- On April 14, Citigroup raised RKLB from Market Perform to Outperform; Cantor Fitzgerald maintains an $85 target price
- The space industry ETF (UFO) has gained over 30% year-to-date, partially driven by SpaceX IPO rumors
Rocket Lab has experienced a whirlwind week. The California-based aerospace company finalized a strategic acquisition, introduced an innovative propulsion system, and secured an analyst rating boost — all while shares surged nearly 10%.
RKLB has soared more than 200% over the trailing twelve months and commands a market capitalization of approximately $40.7 billion. The shares had retreated about 27% from their 52-week peak but have recently recovered, reclaiming both the 50-day and 20-day simple moving averages. The stock continues to trade above its 200-day SMA.
Market observers are focused on the $78 threshold. A confirmed breakout above this level could indicate the beginning of another upward trend.
Mynaric Deal Finalized
On April 14, Rocket Lab finalized its Mynaric acquisition for a total price of $155.3 million — consisting of a modest cash payment plus approximately 2.28 million RKLB shares.
Mynaric specializes in laser optical communications terminals, a specialized yet increasingly vital component of satellite technology. This transaction provides Rocket Lab with its inaugural European footprint and enhances its capacity to support commercial constellation developers and defense agencies.
The purchase represents another milestone in Rocket Lab’s strategic evolution from a pure launch provider to a comprehensive space systems integrator. The organization has consistently targeted supply chain components that are difficult to procure at scale, then developing or acquiring the necessary capabilities internally.
Gauss Propulsion System Addresses Critical Supply Gap
The company’s second major reveal was Gauss, an innovative electric satellite propulsion system engineered for mass production. Electric propulsion has historically represented a supply chain constraint — dependable systems haven’t been accessible at volumes required by contemporary constellation operators.
Gauss aims to resolve this challenge. Rocket Lab has established a manufacturing facility with capacity to produce over 200 propulsion units annually. CEO Sir Peter Beck stated directly: “Proliferated constellations are now the norm, but the propulsion systems needed to maneuver these spacecraft in orbit have simply not been reliably available at any kind of scale.”
The propulsion unit incorporates a Hall Thruster, Power Processing Unit, and Propellant Management Assembly. It operates on xenon fuel, with krypton available as an option. The architecture delivers superior specific impulse compared to chemical propulsion, enabling spacecraft to carry reduced fuel loads while maintaining operational effectiveness during extended missions and station-keeping operations.
Engineering highlights include heaterless cathode technology enabling immediate activation, magnetic shielding to minimize degradation, and GaNFet-based power electronics. The platform is ITAR/EAR-free for low Earth orbit constellation deployments.
Regarding analyst coverage, Citigroup elevated RKLB to Outperform on April 14. Cantor Fitzgerald confirmed its Overweight stance with an $85 price objective following the iQPS multi-launch contract reveal. The consensus among 17 analysts stands at Moderate Buy, with an average price target of $79.85.
Rocket Lab recently concluded its at-the-market equity program, disposing of 6.73 million shares for gross revenue of roughly $474 million. Additionally, the company executed collared forward agreements involving 7.45 million shares, with anticipated proceeds between $474 million and $642 million.
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