TLDR
- Rocket Lab shares climbed 10% Monday to $77.55, extending Friday’s 18% rally and pushing 2025 gains to 177%
- U.S. Space Development Agency awarded the company an $816 million contract for 18 satellites
- The company completed its 21st launch Sunday, breaking its annual launch record
- Analysts raised price targets following the contract win, with 67% maintaining buy ratings
- Trump’s executive order on space superiority provided additional momentum for space stocks
Rocket Lab shares closed at $77.55 Monday, marking a 10% single-day gain. The stock has now surged 177% in 2025 from its starting price near $23.
Friday’s 18% jump set the stage for Monday’s continued momentum. The S&P 500 and Dow Jones gained just 0.6% and 0.5% respectively during the same session.
The U.S. Space Development Agency handed Rocket Lab its biggest contract ever on Friday. The $816 million deal covers the design and manufacture of 18 satellites.
These satellites will form part of the Tracking Layer Tranche Three program. The system operates within the Proliferated Warfighter Space Architecture, the U.S. Space Force’s low Earth orbit satellite network.
The contract includes $806 million in base value. An additional $10.45 million in options sweetens the deal.
Advanced Technology Wins Big Contract
The satellites will carry advanced missile warning and tracking sensors. Rocket Lab‘s Phoenix infrared sensor payload will be integrated into the systems.
StarLite space protection sensors will also feature in the satellite design. These represent cutting-edge capabilities for defense applications.
Stifel analyst Erik Rasmussen bumped his price target from $75 to $85. He kept his buy rating intact following the announcement.
Analyst sentiment remains strong across the board. Currently 67% of analysts rate Rocket Lab as a buy, compared to the S&P 500 average of 55%.
The average analyst price target stands at $71. The stock has already surpassed this level by over 9%.
Launch Milestone Adds to Momentum
Sunday brought another achievement for the company. Rocket Lab completed its 21st launch of 2025, setting a new annual record.
The mission served the Institute for Q-shu Pioneers of Space. The Japan-based company specializes in Earth imaging technology.
President Trump’s Thursday executive order on American space superiority boosted sector sentiment. The directive targets a 2028 moon return and calls for a lunar outpost.
The order emphasizes increased space sector investment. This policy shift benefits all space technology companies including Rocket Lab.
Financial metrics show strength beyond the stock price. The company maintains a current ratio of 3.18, indicating solid liquidity.
Revenue jumped 52.42% according to recent data. However, some analysis suggests potential overvaluation at current levels.
Additional Wins Build Pipeline
The Canadian Space Agency recently awarded Rocket Lab CAD $999,951. The funding supports development of a medium-class reaction wheel for larger satellites.
Earlier this year, the company launched a U.S. Space Force mission. That operation deployed four DiskSat spacecraft successfully.
The stock touched an all-time high of $74.26 during Monday’s session. It closed above this level at $77.55, cementing new record territory.
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