Rocket Lab Stock (RKLB) Soars on $816M Contract Win, Announces 21st Electron Launch

Rocket Lab (RKLB) stock has rallied 177% year-to-date and continues to soar on new contract wins and additional successful launches. RKLB stock rose 4% in Friday's extended trading session after the company announced a $816 million contract to build a missile-defense satellite constellation for the U.S. Space Development Agency (SDA). The company, which makes satellites and rockets and provides launch services, highlighted that this is its largest contract to date.Claim 50% Off TipRanks Premium and Invest with Confidence Unlock hedge-fund level data and powerful investing tools designed to help you make smarter, sharper decisions Stay ahead of the market with the latest news and analysis so your portfolio is always positioned for maximum potential Moreover, on December 21, Rocket Lab announced that it successfully launched its 21st Electron rocket of the year to deploy the latest satellite for Q-shu Pioneers of Space, Inc. (iQPS), a Japan-based Earth-imaging company. Interestingly, Rocket Lab first launched for iQPS in 2023. It has deployed seven satellites to the iQPS constellation, making Electron the primary launcher for the Earth-imaging company. An additional five Electron launches for iQPS are planned from 2026. RKLB Wins $816M Space Contract RKLB's subsidiary, Rocket Lab USA, scored a $816 million contract from the SDA to design and manufacture 18 satellites. The satellites will be equipped with advanced missile warning, tracking, and defense sensors for the agency's Tracking Layer Tranche 3 program under the Proliferated Warfighter Space Architecture (PWSA). Under the contract, Rocket Lab will deliver satellites equipped with advanced missile-warning, tracking, and defense sensors for continued detection and tracking of emerging missile threats. The $816 million contract includes a $806 million base contract and up to $10.45 million in options. The company highlighted that this $816 million contract is in addition to the existing $515 million award to deliver 18 satellites for SDA's Transport Layer-Beta Tranche 2 program, which provides secure, low-latency communications across the PWSA. This brings the total SDA contract value to more than $1.3 billion and reinforces the company's ability to execute on large-scale, high-stakes national security projects. Is RKLB Stock a Good Buy? In reaction to the announcement of the new SDA contract, Stifel analyst Erik Rasmussen increased his price target for Rocket Lab stock to $85 from $75 and reiterated a Buy rating. The 5-star analyst noted that it is the largest contract to date for RKLB and marks "another meaningful win." All eyes are now on the company's reusable Neutron rocket, which is expected to launch early next year. Currently, Wall Street has a Moderate Buy consensus rating on Rocket Lab stock based on nine Buys and four Hold recommendations. The average RKLB stock price target of $66 indicates 6.4% downside risk from current levels following a stellar rally.