Rocket Lab USA (RKLB) is experiencing significant momentum as trading begins this week. The company’s equity surged approximately 18% last Friday and is indicating a further 5% gain in pre-market activity, pushing the share price above $74. This bullish sentiment is fueled by a landmark contract award from the U.S. government and an unblemished operational performance for the year.
Unprecedented Contract from Space Development Agency
The primary catalyst is a major $816 million award from the U.S. Space Development Agency (SDA). The contract covers the development and manufacturing of 18 satellites for the “Tracking Layer Tranche 3” program. This represents the single largest contract in Rocket Lab’s corporate history.
When combined with a prior SDA contract valued at $515 million, the company’s total backlog with this agency now exceeds $1.3 billion. The satellites will be equipped with Rocket Lab’s own vertically integrated components, including solar panels, structural elements, and star trackers.
Operational Excellence with a Perfect Launch Record
Complementing this financial news is the company’s demonstrated operational reliability. Rocket Lab concluded its 2025 launch schedule on December 21 with the “The Wisdom God Guides” mission, successfully deploying a Synthetic Aperture Radar (SAR) satellite for Japanese firm iQPS into orbit using its Electron rocket.
This mission marked the 21st and final Electron launch of the year, maintaining a 100% success rate across all missions. This consistent performance stands out in a sector that has recently witnessed setbacks, such as the reported failure of a Japanese H3 rocket during the launch of the QZS‑5 satellite.
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Market Reaction and Financial Snapshot
In response to the announcements, analysts at investment bank Stifel raised their price target for Rocket Lab shares from $75 to $85, reiterating their “Buy” recommendation. They highlighted that the substantial SDA order reinforces the company’s strategic evolution from a pure launch provider to a comprehensive space systems company.
The stock has appreciated roughly 177% since the start of 2025, significantly outperforming the S&P 500. Rocket Lab’s current market capitalization stands at approximately $37.7 billion.
Key Data Points:
* SDA Contract Value: $816 million
* 2025 Launch Record: 21 successful launches, 100% success rate
* Year-to-Date Share Performance: Up approximately 177%
* Stifel Analyst Target: Increased to $85 from $75 (Buy rating)
* Market Capitalization: ~$37.7 billion
Strategic Focus Shifts to Execution
Looking ahead to 2026, the focus will shift to executing the company’s substantial order backlog. The recent iQPS launch is part of a longer-term partnership that includes five additional missions scheduled from 2026 onward.
Furthermore, the capital from the SDA contract will help fund the development of the larger Neutron launch vehicle, a cornerstone of Rocket Lab’s growth strategy for the coming years. In the near term, the stock is trading close to its 52-week high of $73.97, with pre-market indicators suggesting a potential breakout above this level.
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