New York, Jan 16, 2026, 10:39 EST — Regular session
- Rocket Lab shares jump following Morgan Stanley’s upgrade and higher price target.
- This comes after KeyBanc downgraded the stock, citing “priced-in” catalysts.
- Traders are eyeing updates on Neutron’s timeline alongside the upcoming earnings date window.
Shares of Rocket Lab Corp (RKLB) jumped roughly 6% on Friday following an upgrade from Morgan Stanley, signaling renewed investor faith in the space launch and satellite firm. The stock climbed 6.4% to $96.61 in morning trading. 1
The upgrade is crucial now as investors remain divided over whether Rocket Lab’s rally can sustain itself without fresh catalysts. The coming weeks could shake the stock, hinging on updates about the Neutron rocket timeline and the speed of government contract awards.
On Thursday, KeyBanc Capital Markets cut Rocket Lab’s rating to “sector weight” from “overweight,” noting that recent milestones appear priced into the stock and that the near-term risk-reward is fairly even. The firm uses “overweight” to signal expected outperformance, while “sector weight” suggests a more neutral stance. 2
On Friday, Morgan Stanley flipped the script, calling space technology “Attractive” for 2026 and upgrading Rocket Lab to “overweight,” with a price target boost to $105 from $67. Analyst Kristine Liwag pointed to “higher launch cadences, new product intros, policy support & market maturation” driving the sector next year. At the time, the S&P 500 and Nasdaq dipped roughly 0.2%. 3
Rocket Lab is increasingly leaning on defense and national security contracts. In December, the company secured an $816 million deal with the Space Development Agency to build 18 satellites for its Tracking Layer Tranche 3 program — a U.S. Space Force initiative targeting missile warning and tracking. Rocket Lab expects additional subsystem sales could push the total opportunity close to $1 billion. Founder and CEO Peter Beck said the company was “honored to play a role in enabling this.” 4
Investors are watching insider moves closely in these hot momentum stocks. Director Merline Saintil sold 108,500 shares this week in two separate transactions. That included a 96,000-share transfer into an exchange fund and a 12,500-share sale under a Rule 10b5-1 trading plan, according to a Form 4 filing. 5
The key issue remains execution. If Neutron’s launch stumbles or Rocket Lab falls short of its projected launch pace, the stock’s premium valuation compared to established aerospace rivals could come under pressure.
Rocket Lab is set to release its next earnings report near Feb. 26, per Public.com’s earnings calendar. Traders will be watching closely for a firm date and any fresh details that narrow the timeline for Neutron’s inaugural launch. 6
