TLDR
- Rocket Lab received regulatory approval from Germany to acquire laser communication company Mynaric AG
- The stock jumped 12% on March 31 following the announcement
- The deal is expected to close in April 2026
- Stifel Nicolaus reiterated a Buy rating with a $90 price target, implying ~40% upside
- The acquisition secures Rocket Lab’s supply chain for ~$1.3 billion in Space Development Agency contracts
Rocket Lab got the green light from Germany’s Federal Ministry for Economic Affairs and Energy to acquire Mynaric AG. The news sent RKLB up 12% on March 31.
The deal is expected to close in April 2026. It marks a key step in Rocket Lab’s push to grow beyond launch services.
Mynaric specializes in laser communication technology used in satellite constellations. These optical terminals allow satellites to transfer data to each other in space.
For Rocket Lab, pulling this technology in-house is a supply chain play as much as a growth one. The company currently relies on outside suppliers for this critical component.
The acquisition locks in a key supplier for two existing contracts with the U.S. Space Development Agency. Those contracts are worth roughly $1.3 billion combined.
Rocket Lab CEO Sir Peter Beck didn’t mince words on why the deal matters. “We look forward to joining forces with the Mynaric team so that we can make optical terminals available at the volume and pace that commercial and government satellite customers demand,” he said.
Analyst Reaction
Stifel Nicolaus analyst Erik Rasmussen kept his Buy rating and $90 price target on RKLB following the news. That target implies around 40% upside from current levels.
Rasmussen, ranked #137 out of over 12,000 analysts tracked on TipRanks, has a 72% success rate and an average return of 36.10% per rating.
He noted the deal brings Rocket Lab “one step closer to expanding its support of the German and European Space industry.”
On TipRanks, RKLB holds a Moderate Buy consensus based on nine Buy ratings and four Holds. The average price target across analysts sits at $86.92, implying about 35% upside.
RKLB has gained roughly 254% over the past year.
European Foothold
Beyond the supply chain angle, the Mynaric deal opens a new geography for Rocket Lab. The company gains a direct presence in Europe, along with potential access to European Space Agency contracts and European defense work.
Those markets have historically been hard to crack for U.S. space companies.
Rocket Lab also recently secured a $190 million contract for 20 hypersonic test flights for the U.S. Department of Defense. That deal pushed its launch backlog past 70.
Clear Street also initiated coverage on the company with a Buy rating, pointing to its vertically integrated model and Neutron and Electron rocket pipeline.
The company holds more cash than debt and carries a current ratio of 4.08, giving it the financial flexibility to absorb the Mynaric deal.
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