Why Rocket Lab Stock Is Rocketing Higher This Week
Key Points
Deutsche Bank hiked its price target on Rocket Lab stock.
The company reported strong Q1 2026 financial results last week.
Shares are trading at a premium to their historical valuation.
- 10 stocks we like better than Rocket Lab ›
Over the first several days of trading in May, Rocket Lab (NASDAQ: RKLB) hadn't given investors much to celebrate. But that changed abruptly when the company reported first-quarter 2026 financial results after the market closed on May 7. That enthusiasm for the launch services stock has persisted this week, and analysts' positive outlooks on Rocket Lab stock are providing additional fuel for the exuberance.
Investors' enthusiasm is undeniable, as the stock set a new all-time high yesterday, rising to $133.18. According to data provided by S&P Global Market Intelligence, Rocket Lab stock has risen 25.7% from its close on Friday through the end of yesterday's market session.
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Setting new company records is just one factor motivating investors
Maintaining a buy rating, Deutsche Bank (NYSE: DB) raised its price target 64% on Rocket Lab stock to $120 from $73 on Tuesday. The following day, Clear Street initiated coverage on Rocket Lab stock, assigning it a buy rating and a $150 price target.
Last week, Rocket Lab reported surprisingly good financial results. Whereas the consensus among analysts was that the company would report Q1 2026 sales of $189.7 million, Rocket Lab posted revenue of $200.4 million -- a record for quarterly sales.
The company set other high-water marks as well: a 38.2% gross margin and a backlog of $2.2 billion.
In Q2 2026, Rocket Lab forecasts revenue of $225 million to $240 million and a gross margin of 33% to 35%.
Should investors shoot for the stars with Rocket Lab?
Trading at more than 108 times sales, Rocket Lab is valued at a steep premium to its five-year average sales multiple of 14.6. Fortunately for those eager to gain exposure to the burgeoning space economy have a variety of other space stocks to choose from.
Should you buy stock in Rocket Lab right now?
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Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Rocket Lab. The Motley Fool has a disclosure policy.
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