In a strategic move poised to bolster investor confidence, Morgan Stanley analyst Kristine Liwag upgraded Rocket Lab USA, Inc. (RKLB) to an Overweight rating on January 16, 2026. This upgrade not only highlights optimism regarding the company’s potential growth trajectory but also sets a price target of $105—considerably above its current trading price of $96.30. For investors, this shift suggests a favorable outlook in an increasingly competitive aerospace sector.
Recent Price Action
Rocket Lab’s stock has been navigating a bullish tide, demonstrating notable volatility. Currently trading at $96.30, RKLB’s price recently saw an increase of $5.54, or 6.10%, signaling robust investor sentiment. The stock’s performance is heightened by its substantial trading volume, which reached over 36 million shares—significantly surpassing its average volume of approximately 22.9 million. With a market capitalization of about $51.4 billion and a beta of 2.166, RKLB exhibits higher volatility compared to the broader market, indicating that while the stock may face fluctuations, it also holds substantial growth potential.
Over the past year, RKLB has shown an impressive range, hitting a 52-week high of $4.15 while finding support at a low of $554.66. Such a wide range indicates not only volatility but also a changing investor sentiment, increasingly optimistic about the company’s long-term outlook.
Historical Performance
Analyzing RKLB’s performance reveals a stock that has been well-received by investors in recent months. Over the last 30 days, the stock has garnered an impressive return of 73.86%, suggesting strong positive momentum. The bullish sentiment continues into the quarterly results with a 39.02% gain over the last 90 days, while the stock has skyrocketed by 302.76% over the past year. It’s noteworthy that the stock’s weekly volatility stands at 6.86%, with monthly volatility at 8.39%, reflecting the inherent risks and rewards associated with a high-growth company in a fast-evolving industry.
Earnings Analysis
Rocket Lab’s recent earnings report painted a somewhat mixed picture. For the period ending November 10, 2025, the company reported an earnings per share (EPS) of -$0.03, outperforming the average estimate of -$0.05 by a surprise factor of 40%. This marks an improvement over the previous EPS report from August 7, 2025, where the actual EPS was -$0.10 against an estimate of -$0.095. Such improvements signal enhanced operational efficiency and a qualitative uplift in earnings performance, factors that investors typically welcome.
Analyst / Consensus View
The market consensus surrounding Rocket Lab is predominantly positive. With a total of eight ratings from analysts, seven are categorized as Buy, and one as Hold, indicating a strong belief in the stock’s potential. The average price target among analysts is $76, but notably, Morgan Stanley’s upgraded target of $105 reflects a more bullish sentiment. The low price target sits at $60, still providing a substantial margin for growth based on current trading levels.
Stock Grading or Fundamental View
Rocket Lab holds a Stocks Telegraph Grading Score of 48, a comprehensive measure that summarizes the company’s overall health and investment profile based on financial and market analyses. While not at the pinnacle of grading, this score indicates that Rocket Lab possesses solid fundamentals, particularly in a sector characterized by rapid innovation and technological advancement.
Conclusion
For investors considering adding Rocket Lab USA, Inc. (RKLB) to their portfolios, the recent upgrade to Overweight by Morgan Stanley presents a compelling case for near-term growth potential. With a favorable earnings surprise and a predominantly bullish analyst consensus, the stock is suitable for growth-oriented investors seeking exposure to the aerospace sector. However, the inherent volatility—underscored by its high beta—demands a cautious approach, with an acknowledgment of the risks involved. Given the upgrade’s implications and the stock’s momentum, RKLB remains a worthy consideration for those aiming to capitalize on burgeoning aerospace technologies.