Rocket Lab (RKLB) stock climbed about 3% at Thursday's market open. The gain followed a new Buy rating from Citi and the announcement of a major contract win — the largest commercial Electron launch agreement in the company's history.

Citi analyst John Godyn initiated coverage of Rocket Lab USA, Inc. (RKLB) with a Buy rating and a $105 price target; initiations mark the point at which a firm's analyst begins formally rating a stock. That target implies roughly 51% upside from the stock's prior closing price. In initiating coverage, Godyn described Rocket Lab as a "core holding for space bulls," pointing to the company's position across launch services and spacecraft technology.

Rocket Lab operates in several corners of the space economy. Its business spans rocket launches, spacecraft components, and launch infrastructure. Godyn argued that Rocket Lab is one of the only companies providing regular commercial access to orbit, citing the Electron rocket as proof of that track record.

Citi Points to Electron and Vertical Integration

The analyst also flagged Rocket Lab's vertical integration, which allows the company to earn revenue beyond launches alone and spreads its business across multiple segments of the space industry.

Citi's rating arrived just after Rocket Lab announced its biggest-ever commercial Electron contract. The company signed a multi-year deal with Synspective, an Earth observation firm based in Tokyo. The agreement covers 20 Electron launches, under which Rocket Lab will deploy Synspective's StriX synthetic aperture radar satellites into sun-synchronous orbit — a trajectory widely used for Earth observation because it keeps satellites passing over the same locations under consistent lighting conditions. Synthetic aperture radar is an active sensing technology that captures ground imagery regardless of darkness or cloud cover.

Launches under the deal are scheduled between 2028 and 2031, lifting off from Rocket Lab's Launch Complex 1 in New Zealand.

Backlog Tops 100 Missions

The new contract brings Synspective's total booked Electron missions to 47, making it the largest customer in Rocket Lab's history by mission count. Rocket Lab said the deal, combined with other multi-launch agreements signed this year, has pushed its total launch backlog above 100 missions — giving the company longer-term visibility on its Electron business.

Rocket Lab founder and CEO Peter Beck commented on the agreement. He said satellite operators looking for more control over their missions often turn to Rocket Lab. Beck noted that Synspective was one of Electron's earliest customers and said the expanded deal reflects confidence in Electron's launch pace and accuracy.

Alongside Electron, which continues to generate steady business, Rocket Lab is also developing Neutron, its larger reusable rocket. The two programs are running in parallel rather than one replacing the other. With the Synspective launches not scheduled to begin until 2028, Electron's ongoing flights and Neutron's development stand as the nearer-term programs to watch.

According to TipRanks, RKLB carries a Strong Buy consensus rating — a measure that aggregates recent analyst recommendations — based on 14 Buy ratings and two Hold ratings over the past three months. The average analyst price target on Rocket Lab sits at $110.07, suggesting about 56% upside from current levels — slightly higher than Citi's own target.

Financial terms of the Synspective agreement were not disclosed by either company.

This article originally appeared on CoinCentral.