Rocket Lab (RKLB) shares soared on Thursday, climbing 9.26% in regular trading to close at $114.78, as renewed speculation surrounding SpaceX's highly anticipated initial public offering injected fresh momentum into the space sector. The stock continued its upward trajectory in after-hours trading, reaching as high as $119.24 by 6:58 p.m. EDT, according to MarketScreener data.
The rally came amid a broader risk-on session on Wall Street, with the Dow Jones Industrial Average advancing 1.86%, the S&P 500 gaining 1.75%, and the Nasdaq Composite rising 2.54%. Reports from Reuters indicated that SpaceX has set its U.S. IPO price at $135 per share, targeting a $75 billion raise that would value the company at approximately $1.77 trillion.
Benzinga attributed the surge in Rocket Lab's stock to the SpaceX IPO buzz, which has lifted a basket of space-related names including Redwire, AST SpaceMobile, and Intuitive Machines. Notably, there was no company-specific news driving Rocket Lab's move, according to separate notes, with traders citing a general bid for fast-growing aerospace and defense equities.
KGI Securities initiated coverage on Rocket Lab on Thursday, assigning a Neutral rating and a price target of $105. The analyst consensus, per MarketBeat, stands at Moderate Buy, though the average target price of $99.24 sits below Thursday's closing level. Stifel Nicolaus issued a more bullish $132 target earlier in June, highlighting the divergence in analyst views following the stock's sharp appreciation.
Rocket Lab's CFO Adam Spice, speaking at the Wells Fargo Industrials & Materials Conference, provided strategic insights. He noted that SpaceX's expansion into Starlink, Starship, and potential space-based data centers could leave the Neutron rocket with a "very nice spot" in the evolving launch market. Spice also reiterated the company's goal to "launch before the end of the year," despite a testing setback in February.
The company's financial performance remains robust. First-quarter revenue reached $200.3 million, a 63.5% year-over-year increase, while GAAP gross margin hit a record 38.2%. Backlog swelled to $2.2 billion, underpinned by more than 70 missions on the books. For the second quarter, management guided revenue in the range of $225 million to $240 million.
Looking ahead, Rocket Lab's next mission—the "Ten Owl Of Ten" Electron launch for Synspective—is scheduled no earlier than June 17 from Launch Complex 1 in New Zealand. The stock now sits at the intersection of three key narratives: the SpaceX public debut, Neutron rocket milestones, and sustained commercial and government demand for space services.
