This SpaceX Rival Is Soaring on a New Multibillion-Dollar Opportunity. Should You Buy the Stock Now?

Rocket Lab (RKLB) shares rallied as much as 15% on Tuesday, April 15 after landing two new hypersonic contracts – one from the U.S. and another from the U.K. 

The U.S. Air Force has selected RKLB for participation in its $46 billion contract “designed for the rapid acquisition of innovative technologies, engineering services, and technical solutions.”

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Additionally, the space technology company has been picked for the U.K. government’s $1.3 billion program aimed at “rapidly developing advanced hypersonic capabilities,” according to its press release. 

Despite today’s surge, Rocket Lab stock is down more than 35% versus its year-to-date high. 

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Should You Buy RKLB Shares on Hypersonic Contracts News?

Rocket Lab’s selection for transatlantic hypersonic test programs offers a compelling reason to consider capitalizing on the year-to-date decline in its stock price. 

Winning roles in multibillion-dollar initiatives with the U.S. Air Force and the U.K. Ministry of Defense could result in a material boost to its revenue in the coming quarters. 

These contracts substantiate RKLB’s reputation in the defense sector, potentially strengthening investors’ confidence in its long-term growth potential.  

Note that Rocket Lab is already growing at a fast clip, with revenue exploding a whopping 121% in its latest reported quarter to a better-than-expected $132 million. 

Stifel Sees Upside in Rocket Lab Stock to $27 in 2025

Stifel analysts also dubbed Rocket Lab’s inclusion in the two hypersonic programs a “significant milestone” for its launch business in their research note on Tuesday. 

The investment firm reiterated its “Buy” rating on RKLB shares this morning as these contracts offer significant visibility into the company’s revenue growth through the end of this decade. 

Stifel now expects Rocket Lab stock to hit as high as $27 over the next 12 months, which indicates potential upside of more than 25% from current levels. 

Note that the space-tech firm’s HASTE vehicle has successfully launched three times already for the U.S. Department of Defense. 

Other Wall Street Analysts Agree with Stifel on Rocket Lab

While not as bullish as Stifel, other Wall Street firms continue to see significant further upside in Rocket Lab shares as well. 

The consensus rating on RKLB stock currently sits at “Moderate Buy” with the mean target of $24.68 indicating potential upside of about 15% from here.  

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On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.