Rocket Lab Stock Rises as KeyBanc Upgrades to Buy, Says 'RKLB is the Clear #2 to SPCX'

Rocket Lab (RKLB) stock rose ~4% in pre-market trading after KeyBanc analyst Michael Leshock upgraded it to Buy with a $135 price target, citing it as the clear #2 to SpaceX. Leshock highlighted Rocket Lab's successful Electron missions, resolved Neutron testing issues, and potential for high-margin subscription revenue. The upgrade reflects broader bullish sentiment in the space sector due to constrained launch supply and growing NASA activity.

Rocket Lab (RKLB) stock was up about 4% in Monday's pre-market trading as top KeyBanc analyst Michael Leshock upgraded RKLB stock to Buy from Hold with a price target of $135, indicating about 32% upside potential. "RKLB is the clear #2" to SpaceX (SPCX), and could deliver a "similar growth trajectory to SPCX over time."

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Leshock also upgraded Firefly Aerospace (FLY) stock to Buy from Hold with a price target of $50. FLY stock was up more than 4% in Monday's pre-market trading.

The analyst highlighted that following the SpaceX initial public offering (IPO)-related selloff, he sees "compelling opportunities" across the rapidly expanding space sector. Leshock added that NASA activity is growing at a pace not seen since the Apollo era, with launch supply remaining "structurally constrained amid exponential growth" in satellites and space-based applications. The analyst prefers "well-capitalized" commercial space companies, with exposure to national security and NASA priorities.

KeyBanc Turns Bullish on RKLB Stock

Leshock noted that Rocket Lab's Electron has launched about 90 successful missions, while Neutron remains on track for its launch later this year. The 5-star analyst said that he has incremental visibility into the Neutron rocket over the past six months, with the January testing anomaly fully resolved and the team continuing to make progress on key milestones ahead of the launch.

Furthermore, Leshock noted that SpaceX's premium valuation reflects the advantage of having "in-house access to space" and the multiple opportunities that this capability creates. The analyst continues to expect these opportunities to evolve over time and believes that "RKLB is among the best positioned to adapt to the dynamic market given its satellite design/manufacturing and launch heritage."

He highlighted Rocket Lab's ability to build its own satellite network in the future and potentially generate high-margin, subscription-based revenue streams in the times ahead.

Is RKLB Stock a Good Buy Now?

Overall, Wall Street has a Strong Buy consensus rating on Rocket Lab stock based on 10 Buys and three Holds. The average RKLB stock price target of $108.70 indicates 6.2% upside potential.