Rocket Lab shares RKLB rose over 1% during Thursday trading after the space company secured its largest commercial launch contract to date. The stock had gained more than 4% in premarket trading before giving back most of those gains after the market opened.
The company signed a multiyear agreement with Tokyo-based satellite operator Synspective for 20 additional Electron missions. The deal takes the total number of Electron launches contracted by Synspective to 47, making it Rocket Lab's largest customer by mission count. Financial terms were not disclosed.
Rocket Lab will launch 20 StriX synthetic aperture radar satellites into sun-synchronous orbit from its Launch Complex 1 in New Zealand. The missions are scheduled annually between 2028 and 2031 and will support Synspective's plans to build a satellite constellation capable of imaging locations around the world within hours, regardless of day or night conditions or weather.
Citi initiated coverage of Rocket Lab with a Buy rating and a $105 price target, implying about 50% to 51% upside from Wednesday's closing price. Citi analyst John Godyn called Rocket Lab a "core holding for space bulls" and highlighted the company's established Electron rocket and vertical integration. Cantor Fitzgerald earlier this week reiterated its Overweight rating and $122 price target, pointing to Rocket Lab's launch track record and diversified business across commercial and government customers.
The new contract has pushed Rocket Lab's total launch backlog above 100 missions. The company's operational momentum has also shown in its financial results: second-quarter revenue jumped 62% year over year to $234 million, while backlog surged 137% to a record $2.36 billion. Rocket Lab secured $437 million of contracts during the quarter across its Electron, HASTE and Neutron programs.
Rocket Lab founder and CEO Peter Beck said satellite operators looking for more control over their missions often turn to Rocket Lab. He noted that Synspective was one of Electron's earliest customers and that the expanded deal reflects confidence in Electron's launch pace and accuracy.
According to TipRanks, RKLB carries a Strong Buy consensus rating based on 14 Buy ratings and two Hold ratings over the past three months. The average analyst price target sits at $110.07, suggesting about 56% upside from current levels. Analysts expect revenue to rise about 60% to $958 million this year and reach approximately $1.36 billion next year.
