TLDR
- Rocket Lab stock rose 8.2% to $69.89 on Monday after Cantor Fitzgerald reiterated its Outperform rating and $122 price target.
- The Iridium Communications acquisition, expected to close by mid-2027, could roughly double Rocket Lab’s annual revenue.
- The Neutron rocket, launching later this year, will carry 40x more payload than the Electron and charge $50-$55 million per launch.
- Rocket Lab completed its 96th successful Electron mission on Saturday, delivering a satellite for Japanese operator Synspective.
- Raymond James, Berenberg, and Needham have all initiated or reiterated Buy-equivalent ratings with price targets ranging from $80 to $122.
Rocket Lab (RKLB) stock climbed 8.2% to $69.89 on Monday after Cantor Fitzgerald analyst Andres Sheppard reiterated his Outperform rating and $122 price target on the company.
Sheppard pointed to two upcoming catalysts he believes will materially change the company’s revenue picture: the pending acquisition of Iridium Communications and the debut of the Neutron rocket.
The stock’s move came just days after Rocket Lab completed its 96th successful Electron launch on September 19, delivering a StriX Earth-observation satellite for Japanese operator Synspective. It was the company’s 17th mission of 2026.
Unusually heavy bullish options activity accompanied Monday’s move, pointing to rising speculative interest alongside the analyst note.
Rocket Lab is not the only space name moving. AST SpaceMobile gained 5.8% and Planet Labs rose 3.9% on the same day, helped by a broader market rally tied to hopes for a U.S.-Iran deal.
Iridium Deal Could Double Revenue
The planned acquisition of Iridium Communications is a key part of the bull case. Iridium generates more than $850 million in annual revenue, and once the deal closes, expected by mid-2027, Rocket Lab’s total annual revenue could roughly double.
Sheppard described the acquisition as a strategic shift, allowing Rocket Lab to manage global satellite communications and launch operations under one roof, similar to how SpaceX operates.
Rocket Lab has already filed financial and pro forma statements with the SEC related to the deal. Iridium would become an indirect wholly owned subsidiary once it closes.
Neutron Is the “Most Material Catalyst”
Sheppard called the Neutron rocket the stock’s “most material catalyst.” The rocket is expected to launch for the first time later this year.
Neutron will carry around 13,000 kilograms per mission, compared to the Electron’s 300 kilograms. That is a more than 40-fold jump in payload capacity.
Each Neutron launch will be priced between $50 million and $55 million. Rocket Lab also plans to reuse each Neutron engine up to 20 times, which Sheppard said would reduce build costs and improve margins per mission.
The Electron rocket, meanwhile, continues to build a strong track record. Sheppard cited the company’s 96-mission history as an “important moat in the industry.”
Rocket Lab’s Q2 revenue came in 1% above consensus estimates and grew 62% year over year. Third-quarter guidance was set 8% above consensus estimates.
Berenberg initiated coverage with a Buy rating and an $83 price target. Raymond James started at Outperform with an $80 target. Needham reiterated its Buy rating and $120 price target, citing strong revenue growth.
Cantor Fitzgerald noted that RKLB holds more cash than debt on its balance sheet. The stock currently trades around $69.89, well below its 52-week high of $151.
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