Rocket Lab (Rocket Lab (RKLB)) shares are flying higher Monday after KeyBanc analyst Michael Leshock upgraded the stock from Sector Weight to Overweight and slapped a $135 price target on it. The move comes as the space sector gets a fresh jolt of excitement from SpaceX's Nasdaq debut last Friday.
Leshock sees a "constructive setup" for space stocks following the volatility around the SPCX IPO, and he's particularly bullish on companies tied to NASA. He notes that NASA activity is accelerating at levels not seen since the Apollo era. KeyBanc prefers well-capitalized space firms with differentiated growth drivers linked to NASA, national security, and the broader space ecosystem.
Rocket Lab fits that bill nicely. The company has completed roughly 90 successful Electron launches, and its next-generation Neutron rocket is on track for its debut after resolving earlier testing issues. The backlog? Over $2.2 billion, giving strong near-term visibility. And there's potential upside from additional wins, like the Mars Telecommunications Orbiter contract.
Rocket Lab is also deepening its vertical integration, controlling more than 95% of its satellite bus and over 90% of its Electron launch system. With a strong balance sheet, limited near-term financing needs, and an upcoming inclusion in the Nasdaq-100 on June 22, 2026, the analyst sees the company positioned for sustained execution and long-term growth optionality.
But the rally isn't just about KeyBanc. Rocket Lab's move is directly tied to SpaceX's historic Nasdaq debut on Friday. The SpaceX effect is real, and it's lifting other space stocks too. Plus, Rocket Lab itself announced it's joining the Nasdaq-100 Index, effective before market open on June 22. That's a big deal—it places Rocket Lab among the 100 largest non-financial companies on the Nasdaq.
At the time of publication Monday, Rocket Lab shares were up 6.91% at $109.47. Not bad for a company that started with small rockets and is now aiming for the moon—literally.
