Key Takeaways
- Shares of Rocket Lab (RKLB) gained approximately 2% during pre-market hours Thursday, recovering from an 11% decline in the prior trading session.
- The aerospace firm landed a $190 million Department of Defense contract for 20 hypersonic test missions utilizing its HASTE launch system — marking the company’s biggest launch agreement to date.
- This agreement forms part of the MACH-TB 2.0 initiative, with Kratos Defense & Security Solutions (KTOS) serving as the lead contractor.
- The new contract elevates Rocket Lab’s combined order book beyond $2 billion while adding over 70 flights to its mission queue.
- Clear Street’s Gregory Pendy launched coverage on the stock with a Buy recommendation and set an $88 price objective, indicating potential gains exceeding 25%.
Rocket Lab (RKLB) shares rebounded 2% in Thursday’s pre-market session, recouping a portion of losses following the previous day’s 11% slide. The upward momentum stemmed from two significant developments: a landmark military contract and positive analyst coverage initiation.
The aerospace company revealed it has been awarded a $190 million agreement with the U.S. Department of Defense to execute 20 hypersonic test missions leveraging its HASTE launch platform. This represents the most substantial individual launch agreement in the company’s operational history.
This agreement operates within the MACH-TB 2.0 framework — formally known as the Multi-Service Advanced Capability Hypersonic Test Bed program — administered through the Naval Surface Warfare Center Crane Division. The initiative aims to accelerate hypersonic flight experimentation and advance cutting-edge aerospace capabilities for military applications.
Rocket Lab participates in Task Area 1 of this program, overseen by Kratos Defense & Security Solutions (KTOS). The mission schedule spans four years, with the inaugural launch anticipated within months following contract execution.
HASTE, an acronym for Hypersonic Accelerator Suborbital Test Electron, represents a specialized variant of Rocket Lab’s Electron launch vehicle engineered exclusively for hypersonic operations. The firm has conducted HASTE missions supporting the MACH-TB program since 2023, achieving velocities exceeding Mach 5. According to company statements, it maintains a flawless mission success record across all HASTE deployments conducted thus far.
Chief Executive Peter Beck described the contract as a “proud moment,” crediting the organization’s manufacturing capabilities, frequent launch schedule, and technological prowess as decisive factors in securing the award.
Order Book Surpasses $2 Billion Threshold
This military contract propels Rocket Lab’s total backlog spanning launch services and space systems beyond the $2 billion mark, while simultaneously adding over 70 missions to its launch pipeline. The organization has already secured 28 additional launches during Q1 2026, nearly matching the entire volume booked throughout 2025.
This trajectory deserves attention. Should this momentum continue, 2026 may establish itself as a benchmark sales year before reaching its midpoint.
Clear Street Launches Coverage with Bullish Stance
Clear Street’s Gregory Pendy commenced coverage of RKLB Thursday with a Buy recommendation alongside an $88 price objective — suggesting potential appreciation exceeding 25% from present valuation.
Pendy emphasized Rocket Lab’s vertically integrated business structure as a strategic differentiator and identified two primary expansion catalysts: the small-payload Electron rocket and the forthcoming medium-payload Neutron vehicle.
Neutron, featuring reusable architecture designed for larger payload capacity, is currently scheduled for Q4 2026 deployment following production timeline adjustments. Pendy believes it will unlock substantially larger market opportunities with enhanced revenue generation per mission compared to Electron.
He additionally identified Electron’s launch frequency as a growth accelerator, projecting approximately 52 Electron missions annually by 2030.
Regarding the Space Systems division, Pendy observed that Rocket Lab increasingly secures prime contractor positions rather than subcontractor assignments — a transition that generally delivers improved profit margins and greater operational autonomy.
The broader Wall Street perspective on RKLB remains favorable. Data from TipRanks indicates the stock holds a Strong Buy consensus rating supported by nine Buy recommendations and four Hold ratings issued over the past three months. The mean price objective stands at $89.36, implying approximately 28.6% upside potential from current trading levels.
Rocket Lab has secured 28 new launch contracts during Q1 2026 alone, nearing its complete 2025 annual total.
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