Stock Track | Rocket Lab USA Plummets 5.02% Intraday After KeyBanc Downgrades to Sector Weight

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Rocket Lab USA, Inc. (NASDAQ: RKLB) saw its shares plummet by 5.02% during intraday trading on Thursday, reflecting investor reaction to a significant analyst downgrade.

KeyBanc Capital Markets downgraded Rocket Lab from "Overweight" to "Sector Weight," citing that the company's multi-year growth catalysts have already been realized and are now well-reflected in the stock's valuation. The brokerage noted that while Rocket Lab remains one of the highest-quality companies in the space sector, the risk-reward profile appears balanced in the near to medium term. The downgrade follows a strong rally in 2025, during which the stock surged ~174%.

Despite the downgrade, KeyBanc acknowledged Rocket Lab's achievements, including a recent $816 million contract award and progress on its Archimedes engine. The stock's overbought RSI (73.57) also suggests potential for a pullback after its significant run-up.

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