TLDR
- KeyBanc upgraded RKLB to Overweight with a $135 price target, implying ~40% upside from current levels
- Rocket Lab will join the Nasdaq-100 Index effective June 22, 2026
- The Neutron rocket remains on schedule for its first launch later this year after a January anomaly was resolved
- Q1 revenue hit $200.35 million, up 63.4% year-over-year, beating analyst estimates of $189.65 million
- Institutional ownership stands at 71.78%, with multiple hedge funds increasing their positions in Q1
Rocket Lab (RKLB) is trading at $102.39, up 6.50% on Monday, as a fresh analyst upgrade and an upcoming index inclusion put the stock back in focus.
KeyBanc upgraded RKLB to Overweight from Sector Weight and set a $135 price target. That represents roughly 40% upside from where the stock sits today. The firm kept its financial estimates unchanged.
The upgrade comes as Rocket Lab prepares to enter the Nasdaq-100, effective June 22. Index inclusion tends to drive buying from the 200-plus investment products that track the index, which collectively hold over $800 billion in assets.
KeyBanc pointed to Rocket Lab’s position as the second-largest player in the commercial space launch market. The Electron rocket has now completed around 90 successful missions.
The bigger story for some investors is the Neutron rocket. KeyBanc said it has gained better visibility on the program over the past six months and confirmed that a testing anomaly from January has been fully resolved. Neutron is still on track for its first launch later this year.
Stifel also recently raised its price target on RKLB to $132 from $110, maintaining a Buy rating, citing strong revenue momentum and an expanding backlog.
Q1 Results Beat Estimates
On May 7, Rocket Lab reported Q1 revenue of $200.35 million, ahead of the $189.65 million analysts expected. That was up 63.4% from the same period a year ago.
EPS came in at -$0.07, matching consensus. The company posted a negative net margin of 26.87% and a negative return on equity of 11.72%. Analysts expect full-year EPS of -$0.29.
The stock has surged over 300% in the past year. It hit a 52-week high of $151.00 and a low of $25.24, and currently sits about 24% below that peak. The 50-day moving average is $101.62.
Institutional Interest Remains Strong
Institutions own 71.78% of RKLB. In Q1, AQR Capital Management more than doubled its position, adding 92,849 shares. NewEdge Advisors raised its stake by over 1,800%. UBS Asset Management added 90,758 shares, bringing its total to 773,548.
Entropy Technologies LP increased its holding by 18.5% in Q4, bringing its stake to 55,117 shares worth around $3.85 million.
On the insider side, Director Alexander Slusky sold 100,000 shares on May 12 at $118.08, reducing his position by 18.7%. Insider Marvin Bradford Clevenger sold 15,549 shares on May 26 at $142.57, with the sale linked to tax obligations on vesting equity awards.
Overall analyst sentiment remains positive. Twelve analysts rate RKLB a Buy, three give it a Strong Buy, five Hold, and one Sell. The consensus price target sits at $102.76.
The stock has also benefited from broader attention on the space sector following SpaceX’s recent Nasdaq debut, with traders rotating into space-related names.
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