Shares of Rocket Lab (RKLB) experienced a notable increase recently as Morgan Stanley set one of the highest price targets on Wall Street for the stock. Five-star analyst Kristine Liwag raised questions regarding Rocket Lab’s valuation following a significant rally in 2025. Despite concerns of overvaluation, she emphasized strong investor interest in space and the limited number of high-quality space companies, which justify the stock’s elevated valuation.
Rocket Lab’s Position in the Market
Rocket Lab is recognized as the leading small rocket launch provider. The company is poised to launch a medium-lift rocket amid a tight launch capacity environment. Liwag pointed out Rocket Lab’s rapid expansion in its space systems division and its objective to create its own satellite network.
Comparison to SpaceX
In her analysis, Liwag noted parallels between Rocket Lab and SpaceX. Both companies are enhancing their rocket capacity and emphasize reusability, along with ambitions to develop satellite constellations akin to SpaceX’s Starlink. Morgan Stanley anticipates that as Rocket Lab advances its comprehensive space strategy, investors may start to see it as a smaller public equivalent of SpaceX.
Performance Metrics and Future Outlook
- Total stock increase: 168% in 2023
- Price target set by Morgan Stanley: $68
- Average price target for RKLB: $53, indicating a potential downside risk of 20.6%
Despite the optimistic projections, there are concerns regarding a potential pullback in stock value due to the rapid increase in share price. Analysts have established a Strong Buy consensus for RKLB, backed by nine Buy ratings, three Hold ratings, and no Sell ratings over the past three months.
As Rocket Lab continues its trend of frequent launches and expanding mission schedules, investor interest is likely to remain high. The comparisons to SpaceX could play a significant role in shaping future perceptions of Rocket Lab’s valuation and market position.
