Space Rocket Lab's stock has soared to a record. Does it make sense to buy them?

Shares of Rocket Lab, a space company that delivers cargo to Earth's orbit on its own rockets and competes with Elon Musk's SpaceX, soared 10%, hitting an all-time high. The rally began after the company's new successful launch, which made its record this year even more compelling. The company's market value has tripled since the start of 2025, but Wall Street still advises buying these securities.

Shares of Rocket Lab jumped 10% in trading on Monday, December 22, updating the all-time record on the Nasdaq exchange. On Friday, December 19, the quotes of the company also showed a sharp increase - immediately by 18%. Thus, since the beginning of the year, the capitalization of Rocket Lab has increased by more than 200%.

On Friday, the largest single contract in the company's history was revealed - it has signed an $816 million agreement with the U.S. Space Development Agency, Barron's reports . Under the deal, it is to design and manufacture 18 satellites for a program to create a network of vehicles in low-Earth orbit.

And on Sunday, Rocket Lab conducted its 21st launch this year, extending the record already achieved for the number of launches this year and showing a 100 percent mission success rate, Benzinga notes . The launch was part of a contract with the Institute for Q-shu Pioneers of Space, a Japanese Earth imaging company.

After the announcement of the new contract, Stifel analyst Erik Rasmussen reiterated his recommendation to buy Rocket Lab shares and raised his target price from $75 to $85, Barron's reports . This benchmark implies the potential for growth of almost 10% relative to the closing quotations on December 22.

67% of analysts tracking Rocket Lab stock have assigned a Buy rating to the stock, according to FactSet data. For comparison, the average share of such recommendations on S&P 500 index is about 55%, Barron's points out. No analysts advise to sell the company's securities. At the same time, the average target price is just over $66, MarketWatch shows . That target is 15% below the last close.

The industry was also boosted by an executive order on ensuring "U.S. space superiority," which President Donald Trump signed on Friday, CNBC reported . Among the goals outlined are a return to the moon by 2028, the establishment of a lunar outpost and increased investment in the sector. This supported the securities of the entire space technology sector. Of the other positive news, which the channel calls, is the approval of billionaire and ally of Elon Musk Jared Isaacman as head of NASA.

Shares of rocket maker Firefly Aerospace, which went public in August, rose 16%, while Intuitive Machines added about 11% after a buy recommendation from analyst Keybanc.

This article was AI-translated and verified by a human editor