Could Rocket Lab Actually Climb 56%? Or Is Morgan Stanley Totally Wrong?
Morgan Stanley reduced its price target for Rocket Lab to $103, 56% above its Nov. 11 close of $66.15, while maintaining an Overweight rating. The company sold $2.4B in stock Q3 and delayed Neutron's first launch to 2027. Analysts expect 3 cents EPS for 2027, down from 16 cents a year ago. Rocket Lab reported record revenue of $268M, up 73%, but a wider GAAP loss of 12 cents per share.
How this was made
The 30-second read
Why it matters
The target cut reflects weaker EPS expectations but maintains a bullish rating, indicating limited downside risk.
Market read
Analyst note provides fresh guidance that could influence short‑term trading decisions on RKLB.
Timing
today
Background
Morgan Stanley's price target adjustment follows Rocket Lab's recent stock issuance, a delayed Neutron launch, and a GAAP loss wider than expected.
Ticker impact
Morgan Stanley cut its Rocket Lab price target to $103 from $105 and kept an Overweight rating, citing lower EPS expectations.
potential modest upside as the target remains above the current share price, but limited upside due to lowered EPS outlook
The new target is only slightly lower than the prior level and still above market price, suggesting limited downside pressure but modest upside potential.
Key entities
- companyRocket Lab
Space launch services provider (ticker RKLB).
- analystMorgan Stanley
Equity research firm issuing the price target.
