Rocket Lab secured a $266-million firm-fixed-price U.S. Air Force contract on Tuesday.
- The contract is for HASTE, a suborbital variant of Rocket Lab’s proven Electron rocket.
- Stifel analyst Erik Rasmussen called the award “strong validation of HASTE’s operational performance.”
- Last week, Piper Sandler said that it views Rocket Lab’s Electron rocket as offering an edge in small-payload launches versus SpaceX’s Falcon 9.
Shares of Rocket Lab jumped 4% on Wednesday, on track for its second consecutive day of gains, after the company secured a $266-million firm-fixed-price U.S. Air Force contract for 12 suborbital launches for its Electron rocket, with options for six additional missions.
The deal, managed by Space Systems Command, runs through December 2028 from Alaska’s Pacific Spaceport Complex and builds on a prior $190-million award earlier this year. The award is for HASTE — Hypersonic Accelerator Suborbital Test Electron — a suborbital variant of Rocket Lab’s proven Electron rocket.
Wall Street Weighs In
Stifel analyst Erik Rasmussen called the award “strong validation of HASTE’s operational performance” and noted its rising strategic relevance as the U.S. accelerates hypersonic weapons development. Stifel maintains a ‘Buy’ rating on Rocket Lab shares.
Last week, Piper Sandler said that it views Rocket Lab’s Electron rocket as offering an edge in small-payload launches versus SpaceX’s Falcon 9, while the larger, reusable Neutron rocket in development represents the key next growth phase. Piper Sandler noted that Rocket Lab trades at a premium to SpaceX and expects its valuation to track SpaceX’s performance going forward. Piper initiated coverage of the stock with a ‘Neutral’ rating and $83 price target and said that it, however, prefers AST SpaceMobile in the space sector for its “more palatable valuation” and clearer core profit upside.
RKLB’s Next Growth Phase
Rocket Lab operates two primary launch vehicles: the operational Electron and the upcoming Neutron. Neutron, currently in development, is a medium-lift reusable rocket, unlike the small-lift orbital rocket that is Electron.
“We aim to have [Neutron] on the pad and launched by the end of the year. All those numbers are looking good Charles, you shouldn’t have sold your stocks,” Rocket Lab CEO Peter Beck said in an interview earlier this month.
How Did RKLB Retail Traders React?
On Stocktwits, retail sentiment around RKLB stock stayed within the ‘bullish’ territory over the past 24 hours, while message volume stayed at ‘high’ levels.
In a Stocktwits poll taken by more than 300 people, 43% said that they are buying the stock after the new contract win, while 19% said they are staying put.
A Stocktwits user opined that RKLB is “approaching overbought conditions.”
Another user sounded more bullish and expressed hopes for more contract wins this year.
RKLB stock has gained 3% year-to-date.
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