Citizens Jmp upgraded Rocket Lab (RKLB) from Market Perform to Outperform, setting a price target of $85.00. The upgrade is based on the company's expansion into defense and space services, which are expected to deliver higher margins and more consistent growth.
Rocket Lab shares rose approximately 2% in pre-market trading on Tuesday following the announcement. Analysts noted that the company’s diverse business model creates a favorable risk-to-reward profile for investors.
Positive industry trends, including rising geopolitical tensions and increased defense spending, serve as primary growth drivers. Additionally, the upcoming SpaceX IPO is expected to draw significant investor attention to the space sector, providing an indirect boost to Rocket Lab.