TLDR
- Rocket Lab (RKLB) stock fell as much as 11% Thursday after Neutron’s first launch moved to 2027.
- CEO Peter Beck blamed errors in the production process, which the company has fixed.
- KeyBanc kept a Buy rating but cut its price target to $100 from $135.
- The stock is down close to 25% this year and nearly 70% below its May record.
- Wall Street holds a Strong Buy consensus, with an average price target of $100.25.
Rocket Lab (RKLB) stock dropped on Thursday after the company pushed back the first launch of its Neutron rocket to 2027. The stock fell as much as 11% in recent trading.
Another report had the stock down 7% on the day. Either way, it was a rough session for a stock that has had plenty of them lately.
CEO Peter Beck explained the delay in a presentation on Wednesday. He said the company is trying to balance speed with building a reliable rocket.
“We’re balancing speed to first launch with bringing a reliable, high cadence rocket to market for the long term,” Beck said. He added that this means making deliberate choices about timelines.
Beck said Rocket Lab found errors in its production process. Fixing them took time.
What Caused the Delay
Neutron was first supposed to fly last year. This is the latest delay for what Rocket Lab calls the world’s largest carbon composite rocket.
KeyBanc analyst Michael Leshock said the company found manufacturing defects in its stage one propellant domes. The issue has been fixed, but the investigation took time.
Rocket Lab plans to finish two key production and testing steps this year. A third is expected in the first quarter of 2027.
Beck said the company will be in “good shape” to announce a new launch date once those steps are done. No date has been set yet.
Leshock said the delay was largely expected. Management had hinted that the year-end launch window was getting tight.
Where the Stock Stands
With Thursday’s drop, the stock has lost close to one-quarter of its value this year. It sits nearly 70% below its May record.
KeyBanc kept its Buy rating but cut its price target to $100 from $135. The firm pointed to the new Neutron timeline and lower valuations across high-growth space stocks.
Leshock now expects the first launch in the second quarter of 2027. He says the first quarter is still possible if execution goes well.
He kept his 2026 estimates but cut his 2027 revenue estimate by about $53 million. That reflects one fewer revenue-generating Neutron launch next year.
TipRanks shows a Strong Buy consensus on Rocket Lab, with 15 Buy ratings and three Holds. The average price target of $100.25 implies about 82% upside.
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