NEW YORK, Jan 16, 2026, 4:40 PM EST — After-hours
Shares of Rocket Lab USA jumped on Friday following Morgan Stanley’s upgrade to Overweight, with the price target boosted to $105 from $67. The stock closed 6.1% higher at $96.30 and ticked up another 0.5% to $96.77 in after-hours trading.
The call arrives amid a market that’s once again embracing space stocks as a theme trade — chasing contract wins, launch schedules, and any hint of a 2026 catalyst. Rocket Lab’s share price has turned into a swift gauge of investor sentiment.
Space stocks saw wider action on Friday. AST SpaceMobile surged after announcing it had been chosen as a prime contractor for a U.S. Missile Defense Agency program, according to Investors.com.
Morgan Stanley analyst Kristine Liwag said in a note that 2026 looks set to be driven by higher launch cadences, fresh product launches, policy backing, and market maturation. She also mentioned that Rocket Lab could pull off its first Neutron launch early in 2026 and ramp up the Electron launch schedule.
Rocket Lab’s stock has little margin for error after a strong run. On Thursday, KeyBanc Capital Markets cut its rating to Sector Weight from Overweight, saying that many growth drivers are already priced in. The firm sees the near-term risk and reward as roughly even. KeyBanc highlighted Rocket Lab’s $816 million contract with the Space Development Agency secured in December, the launch of its LC-3 pad in Virginia, and ongoing work on the Archimedes engine.
A Form 4 filing revealed that director Merline Saintil offloaded 96,000 shares on Jan. 13 at $86.58 each, followed by 12,500 shares on Jan. 14 at $90. The latter transaction was flagged as automatic under a Rule 10b5-1 trading plan.
On Wall Street, calling a stock “Overweight” means it’s expected to beat its peers. By comparison, “Sector Weight” typically indicates a neutral view.
Rocket Lab’s quarterly update is coming next, with investors keen to get a clearer timeline on Neutron and insight into demand for its space systems. The company hasn’t confirmed an exact date yet, but earnings calendars point to a release around Feb. 26.
