While Rocket Lab USA shares have faced recent market pressure, a significant institutional investment suggests deeper confidence in the aerospace company’s trajectory. Envestnet Asset Management dramatically increased its stake by 137.3% during the second quarter, a move that highlights growing professional investor belief in Rocket Lab’s potential, particularly within the defense sector.
Strong Quarterly Performance Exceeds Expectations
The company’s financial foundation appears solid. For the third quarter of 2025, Rocket Lab announced record revenue of $155.08 million, marking a substantial 48% year-over-year increase and surpassing analyst estimates of $152.45 million. The GAAP gross margin also hit a new peak, reaching 37%.
Future revenue visibility is strengthened by a robust order book. The company secured 17 new launch contracts in Q3 alone, bringing its total backlog to 49 scheduled rocket launches. Looking ahead, CEO Peter Beck has provided fourth-quarter revenue guidance of $170 million to $180 million.
Breakthrough Hypersonic Test Mission for U.S. Defense
A key recent achievement underscores Rocket Lab’s strategic positioning in national security. On November 18, the company successfully launched a suborbital mission using its HASTE launch system. The flight was conducted for the Defense Innovation Unit (DIU) and the Missile Defense Agency (MDA) from Wallops Island, Virginia.
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This mission, which deployed advanced missile defense technologies, was completed a mere 14 months after the initial contract was signed. Critical mission details include:
- This marks the sixth successful HASTE launch since the system’s debut in 2023.
- The primary payload was developed by the Johns Hopkins University Applied Physics Laboratory.
- Several secondary payloads from federal agencies and industry partners were also aboard.
- The vehicle achieved speeds exceeding 7.5 kilometers per second.
The HASTE platform is a strategic growth driver, enabling critical hypersonic testing and firmly establishing Rocket Lab as a vital contractor in the defense technology landscape.
Wall Street Maintains a Bullish Outlook
Despite short-term share price volatility, common in the aerospace industry, analyst sentiment remains strongly positive. The average price target for Rocket Lab stock sits at $57.33, significantly above its current trading level. This optimism is further evidenced by specific analyst actions: Stifel Nicolaus raised its price target to $75, while Baird upgraded its rating to “Strong Buy.”
With institutional investors holding over 71% of the company’s shares, there is broad professional endorsement of its strategy. The combination of a strengthening defense business, record financial results, and a clear pipeline of launch contracts is expected to provide medium-term support for the stock.
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