Rocket Lab Overweight Upgrade Boosts Target to $13 on Reusable Booster Cost Cuts
RKLB•Morgan Stanley raised coverage to overweight and lifted Rocket Lab's price target 18% to $13, citing reusable Neutron booster tests and a projected cut in launch costs to $30 million. Shares jumped 4.2% overnight following the firm’s outlook on a 40-flight pipeline and margin expansion.
1. Morgan Stanley Upgrade and Price Target
Morgan Stanley upgraded coverage to overweight and raised target to $13, highlighting Rocket Lab’s progression towards reusable Neutron boosters. This adjustment reflects an 18% increase from the previous $11 target.
2. Reusable Neutron Booster Development
The firm cited successful ground and suborbital tests of the Neutron first-stage booster, projecting per-launch costs could fall to $30 million once landings are routine.
3. Robust Mission Backlog
Rocket Lab’s current manifest includes roughly 40 scheduled launches through 2028, spanning government and commercial payloads, underpinning revenue visibility and production scaling.
4. Market Reaction and Outlook
Shares climbed 4.2% overnight as investors digested the upgrade, anticipating margin expansion from economies of scale and repeat-launch efficiencies.
