Overview
- Morgan Stanley cites higher launch cadence, new products such as Neutron, and policy tailwinds as it reframes Rocket Lab beyond a pure launch provider and boosts its space-sector view to Attractive for 2026.
- Rocket Lab shares rose about 6% on Friday following the upgrade after surging roughly 291% in 2025.
- Execution highlights include record third-quarter revenue of about $155 million, a $1.1 billion backlog, and 21 successful Electron launches in 2025.
- Recent government wins include an SDA Tracking Layer award around $806–$816 million with options up to roughly $1 billion, Neutron’s inclusion in NSSL Phase 3 with a $5 million task order, and selection to support Kratos’ MACH‑TB 2.0 hypersonic test launches targeted for Q1 2026.
- Key risks remain a rich valuation near 85× forward sales and ongoing quarterly operating losses of about $59 million, with Neutron’s first launch targeted for early 2026 in a medium‑lift market led by SpaceX.