Stifel analysts raised their price target to $31.00 from $26.00 and reiterated a Buy rating on Rocket Lab (RKLB, Financial) Wednesday, but the stock fell 5%. The space company shares, which recently has been on fire for the run, currently trades at $27.9 and has a market capitalization of about $14 billion. Rocket Lab gained 9.7% in the past week.
The updated price target comes after Rocket Lab was selected as part of a team led by Kratos Defense & Security. The $1.45 billion MACH-TB 2.0 contract calls for the work to be done under the MACH-TB 2.0 program with MOC, for a five-year period. The contract involves systems engineering, integration, testing, mission planning, and launch services. This marks Rocket Lab's first time participating in the MACH-TB program, but the company has already launched hypersonic test rockets using the HASTE rocket.
Rocket Lab's continued presence in the MACH-TB program will offer additional growth opportunities, and in particular hypersonic missions, says Stifel analysts. It also helps boost confidence in the company's Electron rocket program. The positive news aside, a solid contract win could suggest investor caution or market volatility, as the share price fell by 5%.
Investors seem to be losing their patience for aerospace stocks as the stock of Rocket Lab Company seems to be tumbling down due to asset volatility in the broader industry.
