Rocket Lab USA (RKLB) blasted higher on Tuesday, January 21st, after President Donald Trump vowed to send astronauts to Mars and the stock received a bumper price target upgrade from analysts at Citi.
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The rocket launch company saw shares shoot almost 7% higher in pre-market trading as it led a rally for space exploration stocks in the wake of Trump’s inaugural address in which he said the American flag would be planted on Mars.
Shares of Intuitive Machines (LUNR), whose lunar lander Odysseus rode a SpaceX rocket to the moon in early 2024, also jumped sharply.
Furthermore, there were gains among other ARK Space Exploration & Innovation ETF (ARKX) holdings such as Archer Aviation (ACHR) and Kratos Defense & Security Solutions (KTOS). It is possible that Trump could redirect federal funding to commercial space exploration companies.
Cit Upgrades RKLB Price Target
RKLB, which is the top holding in ARKX, rode high on the Trump comments on space exploration, but also received a big upgrade from analysts at Citi.
The firm raised its price target on RKLB to $35 from $22 and kept a Buy rating on the shares as part of a Q4 earnings preview for the aerospace and defense group.
Citi expects positive commentary from business jet and space exposed names, while also stating that the broader defense stock selloff “looks overdone” as investors have become too cautious on the outlook for defense spending.
Is RKLB a Good Stock to Buy?
Overall, Wall Street has a Moderate Buy rating on RKLB, based on seven Buys and five Holds. The average RKLB price target of $24.06 is approximately consistent with where the stock trades now.
