Rocket Lab Backlog Tops $2.2B as KeyBanc Sets $135 Price Target

RKLB•2026-06-15

KeyBanc upgraded Rocket Lab to Overweight with a $135 price target, implying roughly 40% upside. The firm cited a Q1 backlog above $2.2 billion (up 20% sequentially and 100% year-over-year), over 95% vertical integration, and a potential $700 million Mars Orbiter contract in H2 2026.

1. KeyBanc Overweight Upgrade

KeyBanc Capital Markets upgraded Rocket Lab from Sector Weight to Overweight and set a $135 price target, implying roughly 40% upside from current levels.

2. Robust Backlog and Contract Pipeline

Rocket Lab’s backlog exceeded $2.2 billion in Q1, marking a 20% sequential and over 100% year-over-year increase, with a potential $700 million Mars Telecommunications Orbiter contract expected in the second half of 2026 and accelerating NASA mission activity.

3. Vertical Integration Strength and Market Position

The company is over 95% vertically integrated on its satellite bus and more than 90% on its Electron rocket, positioning it as the clear number two to SpaceX and a leading beneficiary of constrained launch supply and rising space defense budgets.