The positive news flow continues for aerospace and defense company Rocket Lab USA (NASDAQ: RKLB). Previously, it was a significant analyst boost when Cantor Fitzgerald increased its price target for the space company. And now, most recently, Rocket Lab just announced that the European Space Agency (ESA) chose it to launch a dedicated Electron mission for the first time, marking a key step in Europe’s future LEO-based navigation system.
The company will launch two satellites from its Launch Complex 1 by December 2025.
The positive catalyst and announcement follow a steady stream of similar wins for the company over the previous six months and year. Over the past year, the stock has risen a remarkable 545% and its market capitalization has surged to almost $15 billion as of Wednesday’s close.
It’s certainly a company with significant tailwind that continues to fulfill its goals and make serious progress. Will the momentum continue?
A Real Challenger in the Space Race
Rocket Lab has quickly evolved from a niche space launch provider into a full-stack space company with end-to-end capabilities. Its Electron rocket, which has now completed over 60 successful launches, is tailored for small satellite deployment. This high-demand vertical continues to grow with the commercialization of space and the expansion of Low Earth Orbit (LEO) constellations.
What makes Rocket Lab different is its vertical integration strategy. In addition to launches, the company provides satellite manufacturing, spacecraft components, and mission operations. This end-to-end capability is increasingly attracting the attention of institutions and governments, as evidenced by the new ESA mission award and prior deals with NASA and the U.S. Space Force.
In Q1 2025, Rocket Lab reported $122.6 million in revenue, representing a 32.1% year-over-year increase, driven by substantial contributions from both its Launch Services and Space Systems segments, which generated $35.6 million and $87 million, respectively. Non-GAAP gross margins reached 33.4%, up from 31.7% in the same period.
The company ended the quarter with a backlog of $1.067 billion, with 60% attributed to launch services and 40% to space systems, reflecting robust future demand.
All Eyes on Neutron
While Electron is the company's current revenue engine, its long-term growth story hinges on Neutron, Rocket Lab’s upcoming medium-lift, reusable rocket. Designed to compete directly with SpaceX’s Falcon 9, Neutron will allow Rocket Lab to service much larger payloads. The first Neutron launch is scheduled for the year's second half, and as the date approaches, market speculation and excitement are likely to intensify.
CEO Peter Beck recently noted that Neutron development is on track and that critical manufacturing milestones have been hit. With the rise of defense-related satellite initiatives and space-based infrastructure becoming more integral to national security, Neutron’s potential contracts could take Rocket Lab to an entirely new level.
Analyst Buzz and Bullish Positioning
Cantor Fitzgerald’s bullish price target increase earlier this month added fuel to the rally.
The firm cited Rocket Lab’s growing backlog, consistent execution, and Neutron potential as core reasons for the re-rating.
Several other analysts have echoed similar sentiments, noting RKLB’s differentiated business model and increasing relevance in defense and commercial space markets.
Technically, RKLB has shown tremendous relative strength.
Having spent multiple weeks consolidating below a significant area of resistance near $30, the stock recently cleared that zone and is holding well above it.
In the future, traders and investors will closely watch the $30 area, hoping it will become a future support level.
A New Era for Rocket Lab
Rocket Lab is no longer a pure speculative long shot. It’s evolving into a legitimate force in the commercial and defense space industries. With new government contracts, an expanding backlog, and the highly anticipated Neutron launch on the horizon, the story is gaining significant depth.
Of course, with a 545% move in the rearview mirror, concerns about valuation and volatility are real. But for momentum-focused traders and high-growth investors, RKLB continues to check the boxes: technical strength, analyst support, and a pipeline of high-impact catalysts.
The next few months, particularly any updates on Neutron’s timeline and major contract wins, could be pivotal in determining whether Rocket Lab’s rise is just the beginning of a much larger mission.
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