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Why Rocket Lab Stock Is Soaring Higher Today
Key Points
Rocket Lab reported a successful Electron rocket launch over the weekend.
Stifel upwardly revised its price target on Rocket Lab stock.
Only investors comfortable with high-risk stocks should consider positions in Rocket Lab.
With the company's announcement that it had received an award worth as much as $800 million from the U.S. Space Development Agency to design and build satellites, Rocket Lab (NASDAQ: RKLB) stock jetted into the weekend riding a wave of bullish enthusiasm. This weekend, however, provided its own sources of investor excitement: an auspicious company announcement and an analyst's optimistic view of the stock.
As of 2:58 p.m. ET, shares of Rocket Lab are up 10.1%, retreating slightly from their earlier climb of 14%.
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A weekend update is fueling investors' buying activity today
On Sunday, Rocket Lab announced a successful launch of its Electron rocket. With this most recent mission, Rocket Lab has recorded 21 successful Electron launches in 2025 -- a 100% mission success rate. For context, Rocket Lab reported 10 Electron launches in 2023 and 16 Electron launches in 2024, respectively.
An upwardly revised price target on Rocket Lab stock represents another catalyst for the stock's rise today. Boosting its price target to $85 from $75 yesterday, Stifel recognized the recent award from the U.S. Space Development Agency as "another meaningful win" for the company, according to thefly.com. Based on Rocket Lab's stock closing of $70.52 on Friday, the Stifel price target implies upside of 20.5%.
Is it too late to hitch a ride with Rocket Lab stock?
Ascending to an all-time high today, Rocket Lab's stock has risen more than 214% over the past year. Since the company remains unprofitable, traditional valuation metrics are not helpful in gauging the stock's price tag. Nonetheless, Rocket Lab is a leading option for those interested in exposure to the burgeoning space economy, and its shares could certainly rise higher. Since the company is still in its early stages of development, only investors with higher risk tolerances should consider investing in the company.
Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Rocket Lab. The Motley Fool has a disclosure policy.