Key Highlights
- Shares of RKLB climbed nearly 10%, recovering both 50-day and 20-day moving averages following a ~27% decline from the 52-week peak
- Rocket Lab finalized its $155.3M purchase of Mynaric, expanding into laser optical communications and establishing its initial European operations
- The firm introduced “Gauss,” an electric propulsion system for satellites featuring a manufacturing facility capable of producing over 200 units annually
- Citigroup raised RKLB to Outperform from Market Perform on April 14; Cantor Fitzgerald maintains an $85 target price
- The space industry ETF (UFO) has gained more than 30% year-to-date, partially driven by SpaceX IPO rumors
Rocket Lab has experienced a whirlwind stretch. The California-based aerospace firm finalized a significant acquisition, introduced a novel propulsion technology, and secured an analyst rating boost — all as shares rallied close to 10%.
RKLB has surged more than 200% over the trailing 12 months and currently holds a market capitalization near $40.7 billion. After retreating approximately 27% from its yearly peak, the stock has now recovered above both its 50-day and 20-day simple moving averages while maintaining a position above the 200-day SMA.
Market observers are monitoring the $78 threshold. A decisive break above this level could indicate the beginning of another upward trend.
Mynaric Deal Reaches Completion
On April 14, Rocket Lab finalized its purchase of Mynaric for a combined value of $155.3 million — structured through a modest cash payment alongside approximately 2.28 million RKLB shares.
Mynaric specializes in laser optical communications terminals, a specialized yet increasingly vital component of satellite technology. This transaction provides Rocket Lab with its inaugural European operational base and strengthens its capacity to support both commercial satellite networks and defense-related clients.
The deal represents another milestone in Rocket Lab’s strategic evolution from a launch-focused company toward a comprehensive space systems integrator. The organization has consistently targeted supply chain bottlenecks in satellite manufacturing, either developing internal solutions or acquiring companies to address these gaps.
Gauss Thruster Addresses Industry Supply Constraints
The company’s second major reveal was Gauss, a newly developed electric satellite propulsion system engineered for mass production. Electric propulsion technology has historically represented a constraint in satellite manufacturing — dependable systems haven’t been accessible at the scale demanded by contemporary constellation builders.
Gauss aims to eliminate this obstacle. Rocket Lab has established a manufacturing facility ready to produce upward of 200 thrusters annually. CEO Sir Peter Beck stated directly: “Proliferated constellations are now the norm, but the propulsion systems needed to maneuver these spacecraft in orbit have simply not been reliably available at any kind of scale.”
The propulsion unit incorporates a Hall Thruster, Power Processing Unit, and Propellant Management Assembly. It operates on xenon propellant, with krypton available as an option. The engineering delivers superior specific impulse compared to chemical propulsion, enabling satellites to carry reduced fuel loads while preserving capability for extended missions and orbital maintenance operations.
Technical specifications include heaterless cathode technology enabling immediate activation, magnetic shielding minimizing component degradation, and GaNFet-based power electronics. The platform is ITAR/EAR-free for low Earth orbit constellation deployments.
Regarding Wall Street sentiment, Citigroup elevated RKLB to Outperform on April 14. Cantor Fitzgerald reaffirmed its Overweight stance with an $85 price objective after the iQPS multi-launch contract disclosure. The aggregate view among 17 analysts registers as a Moderate Buy, with an average price target of $79.85.
Rocket Lab additionally concluded its at-the-market equity program recently, distributing 6.73 million shares generating gross revenue of roughly $474 million. The company also executed collared forward agreements covering 7.45 million shares, with anticipated proceeds spanning $474 million to $642 million.
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