Rocket Lab USA, Inc. (NASDAQ: RKLB) received a new Buy recommendation from Raymond James on Friday, with analyst Brian Gesuale setting an $80 price target. The target implies approximately 30% potential upside from the stock’s trading level at the time, although it remains below the broader analyst consensus of about $112. Rocket Lab shares rose 1.6% to $62.95 during Friday’s session.

The new coverage comes after a difficult three-month period for the space company’s stock. RKLB shares declined 46% during the period leading into Friday’s trading, after rising above $150 in late May. By late July, the stock had fallen below $59, several weeks after SpaceX completed its public-market debut.

The decline did not follow disappointing operating results. Rocket Lab reported second-quarter revenue of $234.1 million in August, a 62% increase from the same period a year earlier, exceeding analyst expectations. The company also issued encouraging guidance for the third quarter and said it held more than $2 billion in cash.

The selloff was primarily linked to market weakness across space-sector equities following SpaceX’s June public offering. Space stocks rallied ahead of the listing before reversing sharply after the offering was priced. SpaceX shares also fell below their initial offering price of $135 shortly after the debut.

Contract Backlog Supports Raymond James Outlook

Gesuale identified Rocket Lab’s contract backlog as a central part of his bullish investment thesis. The backlog stood at $2.36 billion at the end of the quarter, up 137% from the comparable period a year earlier.

The increase indicates demand for Rocket Lab’s Electron launch vehicle and its forthcoming Neutron medium-lift rocket, which is being developed for higher-capacity mission segments. Gesuale described Rocket Lab as a complete mission-solutions provider serving civil, commercial, and national-security customers through components, software platforms, and satellite systems.

According to Gesuale, that diversified model can produce stable recurring revenue streams that dedicated launch-service providers do not offer. Rocket Lab’s business therefore extends beyond launch operations to include broader space infrastructure and services.

Planned Iridium Acquisition Could Expand Business

In June, Rocket Lab announced its intention to acquire Iridium, giving the company an operational satellite-communications network. The transaction would bring Rocket Lab closer to the competitive position of SpaceX, which operates the Starlink constellation.

Gesuale said that, after the Iridium transaction is completed, Rocket Lab would become the only vertically integrated space company generating positive free cash flow while pursuing a partnership-focused growth strategy.

His financial model projects standalone Rocket Lab revenue of approximately $1.8 billion in 2028. On a combined basis that includes Iridium’s operations, revenue could reach roughly $2.9 billion. Those estimates compare with anticipated 2026 revenue of about $960 million and estimated 2025 sales of approximately $600 million.

Gesuale expects Rocket Lab to generate positive free cash flow beginning in 2028, matching Wall Street consensus forecasts. SpaceX, by comparison, is not expected to reach that milestone until 2030.

Among analysts covering RKLB, 83% currently maintain Buy ratings. That proportion is well above the typical 55% to 60% Buy-rating share among S\u0026P 500 companies. The average analyst price target is approximately $112.

Raymond James’ $80 target is therefore more measured than the Street average while still reflecting the generally positive analyst view of Rocket Lab.

Source: Blockonomi