RKLB Stock A ‘Core Holding For Space Bulls,’ Analyst Says – Sees 43% Upside As Synspective Deal Boosts Backlog

• The brokerage said Rocket Lab is one of only a few companies “on the planet” delivering regular commercial access to orbit.
• Citi initiated coverage with a ‘Buy’ rating and a $105 price target, implying about 43% upside from current levels.
• Rocket Lab signed its largest-ever commercial Electron contract with Japanese Earth-imaging company Synspective.

Shares of Rocket Lab (RKLB) jumped around 5% in pre-market trading on Thursday, as Citi highlighted the space firm’s proven launch business and growing backlog as key advantages.

Citi initiated coverage with a ‘Buy’ rating and a $105 price target, implying about 43% upside from current levels.

The analyst call comes a day after Rocket Lab announced its largest-ever commercial Electron contract, a 20-launch agreement with Japanese Earth-imaging company Synspective. The deal takes Synspective’s total contracted Electron missions to 47 and pushes Rocket Lab’s overall launch backlog above 100 missions. 

Citi Sees Electron As Rocket Lab’s Key Differentiator 

The brokerage said Rocket Lab is one of only a few companies “on the planet” delivering regular commercial access to orbit. Citi also highlighted Rocket Lab’s unique position in the space industry given its proven Electron launch vehicle.

Citi added that Rocket Lab shares are a “core holding for space bulls.”

RKLB shares are on track to snap a three-session losing streak. However, the stock is currently on course for a first weekly loss in three weeks.  

Synspective Deal Keeps Up Electron Momentum

Rocket Lab has maintained a busy launch schedule this year. The company has carried out missions for commercial and government customers since January and completed its 18th Electron launch of the year last month, averaging 2 missions a month. At the current rate, Rocket Lab would launch 24 missions in 2026, three more than its present annual record.

Wall Street Eyes Bigger Catalysts

Citi isn’t alone in highlighting Rocket Lab’s launch record. Earlier this week, Cantor Fitzgerald reiterated an ‘Overweight’ rating and $122 price target, pointing to its launch performance and mix of government and commercial customers.

Cantor also highlighted two upcoming catalysts: the debut of Rocket Lab’s larger Neutron rocket and its planned roughly $8 billion acquisition of Iridium Communications (IRDM). The company is still testing the launch vehicle, and the first launch date remains unconfirmed. Cantor has previously positioned Neutron as a potential direct competitor to SpaceX’s Falcon 9.

The Iridium deal cleared a major hurdle last week after shareholders approved the transaction, with the companies targeting a mid-2027 closing.

Retail Bullish On RKLB Business Momentum But Neutron Delay Raises Questions

Despite the pre-market gains, retail sentiment for RKLB on Stocktwits turned ‘bearish’ from ‘neutral’ a day earlier. RKLB was also among the top trending tickers on the platform.

One user said there’s a lot to be excited about as a Rocket Lab shareholder, with the company seeing ‘incredible, compounding momentum’ across its businesses.

However, another user highlighted Neutron’s delay.

RKLB shares have shed around 8% so far this year, but have outperformed peers ASTS’ 30% slump, LUNR’s 20.4% decline and SPCE’s 9% loss.

Also read: Nokia, ICEYE Take On SpaceX’s Starlink With Sovereign LEO Network For Defense Customers

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