Rocket Lab (RKLB), one of the leading publicly traded aerospace technology companies, saw its stock surge over 8% on Tuesday. RKLB investors reacted strongly to progress on the company’s Neutron rocket program. The stock’s rise immediately followed the delivery of the Hungry Hippo fairing to the Wallops Island, Virginia launch site, a key component for the Neutron rocket’s first flight.
The climb over the past week highlights a strong start to 2026 for Rocket Lab (RKLB) shares. YTD, the stock is up over 24%, and it has also exploded over 195% in the last 365 days. Market watchers have said investors appear focused on the company’s forward progress rather than any temporary setbacks. Additionally, Rocket Lab’s successful integration of new hardware, ongoing Electron missions, and the company’s role in the small-launch sector are helping support the stock ahead of the next earnings report on February 26.
Furthermore, Wall Street remains cautiously optimistic in RKLB regarding 2026 stock forecasts. Recent prediction upgrades are pushing the stock’s price targets between $100 and $120, reflecting confidence in Rocket Lab’s potential. Numerous analysts suggest that the stock is trading above its fair value, indicating potential overvaluation that could cool down.
Morgan Stanley was one of the latest firms to change their forecast for Rocket Lab RKLB, giving the stock an upgrade. The firm on Friday upgraded Rocket Lab (RKLB) to overweight from equal weight. Morgan Stanley also introduced an “attractive industry view” on the space technology sector for 2026, noting that the favorable trends that drove 2025 outperformance should carry into this year. Morgan Stanley went on to raise its price target on Rocket Lab to $105 from $67.