Rocket Lab Stock Climbs: What's Happening?

Rocket Lab Corp (NASDAQ:RKLB) shares are climbing Monday. Cantor Fitzgerald maintained an Overweight rating and kept its price target in place. Here’s what you should know. Rocket Lab stock is moving in positive territory. What’s driving RKLB shares up? Cantor Fitzgerald Backs Rocket Lab After Neutron Delay Cantor Fitzgerald analyst Andres Sheppard kept an Overweight rating on Rocket Lab and a $122 price target, arguing that the Neutron setback is a short-term hit. Sheppard acknowledged the disappointment but sees no change to the thesis and little long-term impact. The analyst update responds to news from Oct. 14 that Rocket Lab will not fly Neutron for the first time this year. A production problem tied to manufacturing forced the shift, pushing the debut from the fourth quarter into 2027. Rocket Lab had planned a year-end test flight with dummy payloads. Sheppard now pencils in the debut for the second quarter of 2027 and the first paying flight for the fourth quarter of 2027. Management says it has traced the problem to its source. The company credits a new propellant dome, the best the company has produced, with having “cleared the path to resume production.” Rocket Lab must still build, analyze and test a new forward dome, then assemble and test the stage one tank ahead of liftoff. Sheppard believes Neutron will transform the company’s unit economics after a successful debut. Management previously put Neutron’s average selling price at $50 million to $55 million per launch, versus roughly $8.5 million to $10 million for Electron and Haste. Iridium Deal Could Double Rocket Lab Revenue Rocket Lab’s pending purchase of Iridium Communications Inc (NASDAQ:IRDM) offers a second source of growth. The deal pays $54 per share in cash and stock and values Iridium at an enterprise value near $8 billion. Iridium shareholders signed off on Sept. 24, and management is targeting a close by mid-2027. Iridium generated more than $850 million in fiscal 2025 revenue. Sheppard models $939.8 million for Rocket Lab in fiscal 2026. Adding the two businesses, Sheppard expects revenue to roughly double. Sheppard believes analysts’ estimates have not yet priced in the deal or its synergies. RKLB Shares Are Rising RKLB Price Action: Rocket Lab shares were up 3.34% at $52.54 at the time of publication on Monday, according to Benzinga Pro. Rocket Lab is still deep in a downswing from its May 27 high of $151. Rocket Lab’s RSI was 28.0 on Monday, an "oversold" reading that can show selling pressure has become stretched. Even with Monday’s bounce, the stock was still below its 20-day moving average of $67.51, its 50-day moving average of $68.62, and its 200-day moving average of $81.17, keeping the short-, medium- and long-term trend pointed down. Read Also: Elon Musk Challenges Jeff Bezos' Blue Origin and Other SpaceX Rivals, Says They Still Can’t Catch Starship — ‘Even Their Future Plans Are Behind’ Image: Piotr Swat/Shutterstock.com