Shares of Rocket Lab (RKLB) rose on Monday after Morgan Stanley (MS) gave the stock one of the highest price targets on Wall Street. Interestingly, five-star analyst Kristine Liwag noted that many investors are wondering if Rocket Lab is overvalued after the stock’s huge rally in 2025. However, she believes that a strong interest in space and the limited number of quality space companies help explain the high valuation. In fact, Rocket Lab is currently the top small rocket launch provider, and it’s about to launch a medium-lift rocket at a time when launch capacity is limited.
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Liwag also highlighted Rocket Lab’s fast-growing space systems division and its plans to build its own satellite network. She noted that the company is following a similar path to SpaceX (PC:SPXEX) by expanding rocket capacity, focusing on reusability, and working toward its own satellite constellation, similar to Starlink. As a result, Morgan Stanley believes that as Rocket Lab continues to make progress on its full-service space strategy, investors may start to view it as a smaller, public version of SpaceX.
At the same time, Rocket Lab continues to perform well with frequent launches and a growing schedule of missions. Liwag added that investors are now comparing Rocket Lab’s valuation to SpaceX, whose estimated value has jumped from $100 billion in 2021 to around $400 billion today. Still, Morgan Stanley’s price target of $68 suggests that Rocket Lab’s stock might take a breather soon, especially after climbing 168% so far this year.
Is RKLB Stock a Buy, Sell, or Hold?
Overall, analysts have a Strong Buy consensus rating on RKLB stock based on nine Buys, three Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average RKLB price target of $53 per share implies 20.6% downside risk.
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