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Rocket Lab Sets Record on $816 Million SDA Deal Before KeyBanc Downgrade Pulls Shares Back

A key broker’s downgrade signals valuation concerns following the rally driven by the Pentagon satellite award.

Overview

  • Shares hit an all-time intraday high of $91.80 on Wednesday before sliding about 3% to $89.06 Thursday after KeyBanc cut the stock to Sector Weight.
  • Rocket Lab won an $816 million U.S. Space Development Agency contract to build 18 low-Earth-orbit satellites for missile warning and tracking, its largest award and a deal that doubled backlog.
  • Cantor Fitzgerald reaffirmed a Buy rating, calling Rocket Lab the top commercial alternative to SpaceX and identifying the first Neutron launch as the key near-term catalyst.
  • Management targets Neutron’s arrival at the launchpad in Q1 2026 with a first flight in the first half of 2026, following a record 21 Electron launches in 2025 that brought successful missions to 79.
  • Insiders sold roughly 4.2 million shares over the past 90 days for about $262 million, including CFO Adam Spice’s sale of about 1.365 million shares worth roughly $103 million.