3 Reasons Rocket Lab Stock Is Headed to the Moon -- Barrons.com

Dow Jones12-22 21:57

Al Root

Rocket Lab stock is ending 2025 on a roll.

Shares of the space launch and technology company were up 4.6% in premarket trading at $73.78, while S&P 500 and Dow Jones Industrial Average futures were up 0.4% and 0.1%, respectively. The Monday move comes after an 18% jump on Friday, leaving shares up 177% so far in 2025.

A couple of things helped on Friday. For starters, there was an $816 million contract award from the U.S. Space Development Agency, Rocket Lab's largest single award to date. The company will design and manufacture 18 satellites for the Tracking Layer Tranche Three program under the Proliferated Warfighter Space Architecture, the U.S. Space Force's network of small satellites in low Earth orbit.

Stifel analyst Erik Rasmussen raised his price target to $85 from $75 following the award. He rates shares Buy.

Overall, 67% of analysts covering Rocket Lab stock rate the shares at Buy, according to FactSet. The average Buy-rating ratio for stocks in the S&P 500 is about 55%. The average analyst price target for Rocket Lab shares is about $71. It started the year at about $23.

Along with new business, President Trump issued an executive order on Thursday to ensure "American Space Superiority." Some of his goals are to return to the moon by 2028, establish a lunar outpost, and increase investment in the sector. That is good news for all space technology stocks, including Rocket Lab.

Topping it off was Rocket Lab's 21st launch of the year on Sunday, extending its record total for 2025. The mission was for the Institute for Q-shu Pioneers of Space, a Japan-based Earth imaging company.

It's been quite a year for Rocket Lab and its stock. They are entering 2026 with significant momentum.

Write to Al Root at allen.root@dowjones.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

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December 22, 2025 08:57 ET (13:57 GMT)

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