Key Takeaways
- Rocket Lab (RKLB) climbed approximately 2% during pre-market hours on Thursday, recovering from an 11% decline in the prior trading session.
- The aerospace firm locked in a $190 million Department of Defense contract to conduct 20 hypersonic test missions with its HASTE rocket — marking the company’s biggest launch agreement ever.
- This agreement forms part of the MACH-TB 2.0 initiative, with Kratos Defense & Security Solutions (KTOS) serving as the lead contractor.
- The new contract elevates Rocket Lab’s total backlog beyond $2 billion while adding over 70 missions to its launch queue.
- Clear Street’s Gregory Pendy launched coverage with a Buy recommendation and set an $88 price target, indicating potential upside exceeding 25%.
Rocket Lab (RKLB) shares rebounded with a 2% gain in Thursday’s pre-market session, recovering partial losses following the previous day’s 11% selloff. The upward movement stemmed from two significant developments: a milestone defense agreement and positive initiation from a Wall Street analyst.
The aerospace company disclosed that it has been awarded a $190 million Department of Defense contract to execute 20 hypersonic test missions utilizing its HASTE launch system. This represents the company’s most substantial individual launch agreement to date.
This agreement operates within the framework of the MACH-TB 2.0 program — officially known as the Multi-Service Advanced Capability Hypersonic Test Bed — administered through the Naval Surface Warfare Center Crane Division. The initiative aims to accelerate hypersonic flight experimentation and advance cutting-edge aerospace capabilities for military applications.
Within this program’s structure, Rocket Lab operates under Task Area 1, where Kratos Defense & Security Solutions (KTOS) serves as the prime contractor. The mission schedule spans four years, with the inaugural launch anticipated just months after contract execution.
HASTE — an acronym for Hypersonic Accelerator Suborbital Test Electron — represents a specialized variant of Rocket Lab’s Electron launch vehicle engineered exclusively for hypersonic testing missions. The company has conducted HASTE operations supporting the MACH-TB program since 2023, achieving velocities exceeding Mach 5. According to Rocket Lab, it maintains a flawless 100% success rate across all HASTE missions completed thus far.
Chief Executive Peter Beck characterized the contract as a “proud moment,” emphasizing the company’s manufacturing capabilities, quick-turn launch frequency, and technological prowess as critical elements that secured the award.
Total Backlog Crosses $2 Billion Threshold
This latest award propels Rocket Lab’s aggregate backlog spanning launch services and space systems beyond the $2 billion mark, while incorporating more than 70 additional missions into its launch pipeline. The company has already booked 28 fresh launches during Q1 2026 alone, nearing the complete annual total achieved throughout 2025.
This trajectory deserves attention. Should this momentum persist, 2026 may establish itself as a banner sales year well before reaching the halfway point.
Clear Street Launches Coverage with Bullish Stance
Clear Street’s Gregory Pendy kicked off coverage of RKLB Thursday morning with a Buy rating alongside an $88 price objective — representing upside potential exceeding 25% from present trading levels.
Pendy emphasized Rocket Lab’s vertically integrated business structure as a strategic differentiator and identified two primary expansion catalysts: the small-payload Electron vehicle and the forthcoming medium-payload Neutron rocket.
Neutron, designed with reusability features and targeting larger payload capacities, is currently slated for debut in Q4 2026 following production timeline adjustments. Pendy views this platform as unlocking significantly broader market opportunities with enhanced revenue generation per mission compared to Electron.
He additionally spotlighted Electron’s launch frequency as a growth mechanism, projecting approximately 52 Electron missions annually by 2030.
Regarding the Space Systems division, Pendy observed that Rocket Lab increasingly captures prime contractor positions rather than subcontractor assignments — a transition that generally delivers superior profit margins and enhanced operational authority.
The overall Wall Street sentiment toward RKLB remains favorable. Per TipRanks data, the stock holds a Strong Buy consensus derived from nine Buy recommendations and four Hold ratings issued over the trailing three-month period. The mean price objective stands at $89.36, implying approximately 28.6% appreciation potential from current price levels.
Rocket Lab has already secured 28 new launch contracts in Q1 2026 alone, nearly matching its entire 2025 annual sales figure.
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