Rocket Lab’s stock rebounded on Tuesday, recovering some ground after a recent selloff driven by concerns over SpaceX’s potential public debut. One analyst now argues that the market reaction was overblown and fundamentally misguided.
The debate has intensified over whether SpaceX’s eventual IPO would lift the broader space sector or simply divert investor attention away from smaller competitors. Rocket Lab shares had fallen sharply in recent weeks as speculation grew around SpaceX’s plans.
Analysts at KeyBanc Capital Markets upgraded Rocket Lab’s stock, stating the selloff created a buying opportunity. The firm noted that Rocket Lab’s core business remains strong, with a growing backlog of launch contracts and expanding satellite manufacturing operations.
Rocket Lab’s Electron rocket continues to demonstrate reliable performance, and the company is making progress on its larger Neutron rocket. The Neutron vehicle is designed to compete directly with SpaceX’s Falcon 9 for medium-lift missions.
The company recently reported a record backlog of over $1 billion in signed contracts. This backlog includes launches for commercial satellite operators and government agencies, diversifying Rocket Lab’s revenue streams beyond just launch services.
Investor sentiment has been volatile across the space industry, with many stocks tied to the sector experiencing sharp swings. The broader market’s uncertainty around interest rates and economic growth has added to the pressure.
Despite the recent headwinds, Rocket Lab’s leadership has emphasized its long-term growth strategy. The company continues to invest in its spacecraft components business, which has become an increasingly important revenue driver.
KeyBanc’s upgrade helped boost Rocket Lab’s shares by more than 6% in Tuesday trading. The stock remains well below its 52-week high, but the analyst’s comments suggest the selloff may have been an overreaction to SpaceX fears.
