TLDR
- Shares of Rocket Lab advanced 2.3% to $82.08 following news that Viasat has chosen the company to manufacture a satellite bus for the U.S. Space Force’s Protected Tactical SATCOM-Global initiative.
- Stifel’s Erik Rasmussen characterized the Viasat agreement as an eight-figure revenue opportunity and maintains a Buy rating with a $132 target price on RKLB.
- Second-quarter revenue reached $234.1 million, reflecting 62% growth compared to the prior year, though the adjusted loss per share of $0.08 exceeded the anticipated $0.06 deficit.
- The company maintains a contract backlog of approximately $2.36 billion and recently launched eight satellites for MDA Space and Globalstar as part of a $143 million agreement.
- Buy ratings from analysts represent 82% of all coverage, with a consensus target price near $117, although significant insider selling activity during the last three months has weighed on investor sentiment.
Shares of Rocket Lab (RKLB) gained 2.3% on Monday, closing at $82.08, after the aerospace company was selected by Viasat to manufacture a satellite bus for a U.S. Space Force program. The agreement is connected to Viasat’s Protected Tactical SATCOM-Global initiative, which leverages commercial satellite providers to deliver secure military communications capabilities.
During Monday’s trading session, the stock reached an intraday peak of $85.55. Total volume registered approximately 17.9 million shares, running about 25% lighter than typical daily activity.
Erik Rasmussen, an analyst with Stifel, described the Viasat agreement as an eight-figure revenue opportunity for Rocket Lab and suggested additional similar contracts may materialize. Rasmussen maintains a Buy rating on RKLB with a price target of $132.
This Space Force contract award follows a productive operational period for the company. Rocket Lab recently successfully launched eight satellites for MDA Space and Globalstar, representing the initial deployment of 17 platforms covered under a $143 million agreement. All eight spacecraft achieved orbit, established communications, and entered the commissioning phase.
Monday’s price action extended RKLB’s gains to more than 20% over the trailing month. Despite this momentum, shares remain significantly below the 52-week peak above $150 established in May before the SpaceX IPO.
Revenue Momentum Offset by Bottom-Line Miss
Rocket Lab delivered second-quarter revenue of $234.1 million, representing nearly 62% year-over-year expansion and marginally exceeding the Wall Street consensus of $231.6 million. This level of top-line acceleration is exceptional by most corporate standards.
Nevertheless, the company posted an adjusted per-share loss of $0.08, falling short of the forecasted $0.06 deficit. Company leadership attributed the wider-than-expected loss to integration expenses and unfavorable business-mix impacts on profit margins.
Rocket Lab maintains a contract backlog totaling approximately $2.36 billion, spanning commercial, government, and defense sector clients.
Wall Street Coverage and Insider Transactions
Among analysts following RKLB, 82% have assigned Buy ratings, substantially above the 55-60% Buy-rating baseline typically seen across S&P 500 constituents. The mean analyst price objective stands at approximately $117, versus the current market price of $82.08.
Piper Sandler recently launched coverage with a neutral stance and an $83 target. Deutsche Bank elevated its price objective from $73 to $120 with a Buy recommendation in May.
On the sentiment front, not all indicators have been favorable. Company insiders disposed of approximately 3.75 million stock units valued at roughly $351 million during the past 90 days, including transactions by CEO Peter Beck. SVP Arjun Kampani sold 88,000 units in June at an average execution price of $107.98.
Rocket Lab currently carries a market capitalization of approximately $50 billion, translating to roughly 40 times projected sales over the coming 12 months. Three years prior, that valuation multiple stood at around 7 times revenue.
Institutional ownership has expanded considerably. BlackRock established a new stake in Q2 valued at approximately $4.1 billion. Vanguard increased its holdings by 13.4% in Q4. Institutional investors collectively control about 71.78% of outstanding shares.
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