Rocket Lab has been upgraded by Citigroup to a "Buy" rating with a new price target of $50, indicating a strong confidence in the company's growth within the space industry. This upgrade comes on the back of Rocket Lab's impressive performance in the first half of 2025 and its positioning as a formidable competitor to SpaceX.
Here are the key insights from the upgrade:
- Citigroup's upgrade reflects growing confidence in Rocket Lab's potential, setting a new price target of $50.
- Rocket Lab's stock has surged by 40.4% in the first half of 2025, with a year-over-year increase of nearly 600%.
- The company's success is attributed to its Electron rocket and expansion into space systems, positioning it as a strong competitor in the space economy.
On July 14, 2025, Citigroup upgraded Rocket Lab (NASDAQ:RKLB) to a "Buy" rating, setting a new price target of $50, up from $33, as highlighted by TheFly. At the time, the stock was priced at $39.03. This upgrade reflects growing confidence in Rocket Lab's potential within the space industry.
Rocket Lab's stock has shown remarkable growth, surging by 40.4% in the first half of 2025, according to S&P Global Market Intelligence. Over the past year, the stock has increased nearly 600%, showcasing its rapid ascent in the space economy. Rocket Lab is positioning itself as a strong competitor to SpaceX, which has a valuation of $400 billion. The company's success is largely attributed to its Electron rocket, which has completed 68 missions and holds a significant backlog of customer orders. This makes it one of the few reliable commercial launchers, alongside SpaceX, capable of carrying third-party payloads. Rocket Lab's expansion into space systems, including satellites and communication technologies, has further fueled investor interest.
In June, Rocket Lab's stock rose by 33.5%, supported by a bullish market environment. The S&P 500 and Nasdaq Composite also saw gains of 5% and 6.6%, respectively. A statement from a Federal Reserve official about a potential interest rate cut boosted investor confidence, contributing to the stock's rise. Positive analyst coverage has also played a role in Rocket Lab's stock performance. On June 10, Cantor Fitzgerald initiated coverage with an overweight rating, and analyst Andres Sheppard raised the price target from $29 to $35 per share. This reflects Rocket Lab's successful performance and growth potential, further solidifying its position in the market.
