Baird has expressed a bullish outlook on Rocket Lab, predicting that the company’s shares are set to soar from their current levels. In a recent note, the investment firm initiated coverage of the rocket and spacecraft manufacturer with an “outperform” rating and a price target of $83. Notably, Rocket Lab’s shares have already surged an impressive 172% this year. Baird’s price target suggests that the stock could see an additional 20% increase, but the firm believes that, in the long run, shares could potentially exceed $200 each.
“SpaceX 2.0 Primed for Liftoff!” exclaimed Baird analyst Peter Arment. He emphasized that Rocket Lab (RKLB) could evolve into a $200+ stock over time, contingent on a robust growth in launch cadence and advancements in reusable rocket technology.
Arment pointed to the expanding global space launch market as a significant tailwind for Rocket Lab’s stock. He noted that global space launches have experienced a remarkable annual growth rate of approximately 22% from 2020 to 2024, with expectations of continued growth at a mid-teens rate at least through 2030.
The analyst also commended Rocket Lab’s exceptional performance thus far, highlighting its $8.5 million Electron rocket, which has dominated the small-lift launch market. Furthermore, he mentioned that Rocket Lab’s Neutron Rocket is set to compete directly with SpaceX for market share.
“RKLB’s position as a reliable space launch provider is firmly established through its 94% mission success rate,” Arment stated. He added that Rocket Lab’s $50 million Neutron rocket is targeting its first flight in the second half of 2025 or early 2026, positioning it as a competitor to SpaceX’s larger Falcon 9 rocket in the medium-lift launch market.
Additionally, Arment highlighted Rocket Lab’s strong financial position, which provides the company with the flexibility to pursue further mergers or acquisitions. He pointed out that Rocket Lab has a proven track record in this area, having completed five acquisitions since 2020 within the space systems segment.
“The net cash position as of the second quarter of 2025, along with the availability of an ATM facility, allows for strategic flexibility in pursuing bolt-on M&A to expand its vertically integrated spacecraft manufacturing business within the Space Systems segment,” he noted.
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Baird calls this stock SpaceX 2.0, says it’s primed for big gains
