Morgan Stanley upgraded Rocket Lab to ‘Overweight’ from ‘Equal Weight’ and raised its price target to $105 from $67, according to The Fly.
- Morgan Stanley said the trends that led the space technology sector to outperform in 2025 are likely to carry over into 2026.
- The brokerage firm also introduced an “Attractive industry view” for space technology through 2026.
- Rocket Labs closed out 2025 with 21 successful Electron rocket launches.
Rocket Lab USA Inc. (RKLB) drew investor interest with its shares rising 2.8% in pre-market trading on Friday, following a Morgan Stanley upgrade and a price target boost, driven by expectations of strong industry tailwinds in 2026.
Morgan Stanley upgraded Rocket Lab to ‘Overweight’ from ‘Equal Weight’ and raised its price target to $105 from $67, according to The Fly. This represents a near 13% upside to the current share price of $93.2.
RKLB stock is on track to open at an all-time high and was among the top trending tickers on Stocktwits at the time of writing.
What Did Morgan Stanley Say?
The brokerage cast a bullish view on the space technology industry in 2026, adding that the trends that drove the sector’s outperformance in 2025 are likely to carry over into 2026.
Morgan Stanley also introduced an “Attractive industry view” for space technology through 2026, driven by higher launch cadences, new products, policy support, and market maturation. The firm cited improved risk/reward for the upgrades it made, including the Canada-based MDA Space.
Recent Developments
Rocket Lab was among the top-performing satellite companies in 2025, with its stock more than tripling in value. It closed out the year with 21 successful Electron rocket launches and saw its revenue climb nearly 40% in the first three quarters. For the fourth quarter (Q4), the company expects revenue between $170 million and $180 million, representing 32% upside from the previous corresponding period, assuming the upper end of the range.
However, the feather in its cap came in the form of a $816 million contract from the U.S. Space Development Agency last month. Rocket Labs will design and build 18 satellites for the Tracking Layer Tranche 3 program. It is the largest single contract in the company’s history.
Rocket Lab’s first launch this year will take place from New Zealand on January 20.
Retail Reaction
Some users were bullish, despite retail sentiment on Stocktwits remaining in ‘neutral’ territory over the past 24 hours.
One saw a long-term play till 2030.
Another user simply said it would be a perfect weekend if the stock crossed $100.
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