Rocket Lab (RKLB) announced a $266 million agreement with the U.S. Space Force for missile defense testing, marking the company's largest launch contract to date. The news sent shares higher in early trading on Monday, offering a reprieve after the stock lost more than 55% over the trailing two months.
Rocket Lab's largest launch contract, from the US Space Force
Under the agreement, Rocket Lab will conduct 12 suborbital launches with options for up to six additional missions. Launch operations will primarily be staged from the Pacific Spaceport Complex in Kodiak, Alaska. The initial mission is scheduled for no earlier than late 2026, with contract execution running through the end of 2028.
Analysts remain bullish on RKLB despite the recent selloff. The consensus rating on the stock is 'Strong Buy,' with a mean price target of approximately $113—implying potential upside of nearly 80% from current levels. The company's relative strength index (RSI) sits in the early 30s, approaching oversold territory.