Rocket Lab Stock Surges 50%, Heading Toward All-Time High

Investors Cheer Rocket Lab's Strong Q2 Earnings and Upcoming Neutron Launch

Rocket Lab's stock (RKLB) surged by over 50% on Thursday after the company reported strong second-quarter earnings and provided a positive update on its upcoming Neutron launch vehicle.

The company's revenue for the quarter was $51.3 million, well ahead of the $43.8 million consensus estimate. Rocket Lab also reported a net loss of $13.9 million, or $0.10 per share, compared to a net loss of $20.3 million, or $0.15 per share, in the same period last year.

Investors were particularly cheered by Rocket Lab's progress on its Neutron launch vehicle, which is scheduled to make its first flight in 2024. The company said that it has already secured $200 million in pre-orders for the Neutron and that it is on track to begin production later this year.

Analysts Raise Price Targets on Rocket Lab Stock

Following the strong earnings report, several analysts raised their price targets on Rocket Lab stock.

• Bank of America Merrill Lynch raised its price target from $10 to $14.
• Wells Fargo raised its price target from $11 to $15.
• Citigroup raised its price target from $12 to $16.

Analysts cited Rocket Lab's strong execution, its growing backlog of launch contracts, and its progress on the Neutron launch vehicle as reasons for their optimism.

Rocket Lab's Stock Is Now Trading Near Its All-Time High

Rocket Lab's stock is now trading at around $13.50, just below its all-time high of $14.24, which was reached in February 2021. The stock has gained over 100% in the past year, outperforming the broader market.

The company's strong financial performance and its progress on the Neutron launch vehicle suggest that Rocket Lab is well-positioned to continue to grow in the years ahead.