Rocket Lab USA (RKLB) stock soared over 9% in pre-market trading on Friday after it made a bold entry into the U.S. Space Force’s National Security Space (NSS) launch competition. Alongside Rocket Lab, the Space Force has enlisted U.S.-based Stoke Space to join the competition for NSS launch contracts. This move broadens the pool of private companies contending for a share of a multibillion-dollar initiative aimed at strengthening the military’s space access.
Rocket Lab specializes in the development and launch of small satellite launch vehicles. RKLB stock, part of the Russell 2000 Index, is gaining attention for its growth potential.
Rocket Lab Enters the Race for $5.6B NSS Contracts
With this move, Rocket Lab and Stoke Space will compete alongside Elon Musk-owned SpaceX, Jeff Bezos’ Blue Origin, and United Launch Alliance in the NSS launch Phase 3 Lane 1 program. Notably, the NSS contract allows companies to compete for launch service orders until 2029. The U.S. Space Force expects to award at least 30 missions under this program, with a total estimated value of $5.6 billion.
Rocket Lab Secures $5M Task Order
To start with, Rocket Lab and Stoke Space were awarded an initial $5 million task order to undergo a capability review and develop a customized mission assurance process. This process helps the government evaluate potential risks associated with the company’s launch vehicles.
These companies will compete for Lane 1 contracts, the entry-level tier designated for low Earth orbit missions. For emerging players like Rocket Lab and Stoke Space, success in Lane 1 could open doors to broader participation in the Pentagon’s launch programs.
Is Rocket Lab Stock a Buy?
According to TipRanks, RKLB stock has received a Moderate Buy consensus rating, with eight Buys and five Holds assigned in the last three months. The average price target for Rocket Lab is $26.86, suggesting a potential upside of 45.8% from the current level.
