Shares of Rocket Lab USA, Inc. (RKLB) fell as much as 11% in trading on Thursday after the company pushed back the maiden launch of its Neutron rocket to 2027. Other reports put the decline at about 7% on the day. Either way, it marked another rough session for a stock that has had plenty of them lately.

Chief Executive Peter Beck addressed the setback during a presentation on Wednesday, saying the company is working to balance speed with the need to build a reliable rocket.

“We’re balancing speed to first launch with bringing a reliable, high cadence rocket to market for the long term,” Beck said. He added that this approach means making deliberate choices about timelines.

Beck said Rocket Lab had uncovered errors in its production process and that fixing them took time. The company has since corrected the problems.

What Caused the Delay

Neutron — which Rocket Lab bills as the world’s largest carbon composite rocket — was originally supposed to fly last year, making the shift to 2027 the latest in a series of delays for the program.

KeyBanc analyst Michael Leshock said the company found manufacturing defects in its stage one propellant domes. According to a note on the price target cut covered by Investing.com, the issue has been fixed, but the investigation took time.

Rocket Lab plans to complete two key production and testing steps this year, with a third expected in the first quarter of 2027. Beck said the company will be in “good shape” to announce a new launch date once those steps are done. No date has been set yet.

Leshock characterized the delay as largely expected, noting that management had already hinted that the year-end launch window was getting tight.

Where the Stock Stands

With Thursday’s drop, RKLB has lost close to one-quarter of its value this year, and the shares now sit nearly 70% below their May record.

KeyBanc maintained its Buy rating on the stock but cut its price target to $100 from $135. The firm pointed to the new Neutron timeline and to lower valuations across high-growth space stocks as reasons for the reduction.

Leshock now expects Neutron’s first launch in the second quarter of 2027, though he said a first-quarter liftoff remains possible if execution goes well. He kept his 2026 estimates unchanged but lowered his 2027 revenue estimate by about $53 million, reflecting one fewer revenue-generating Neutron launch next year.

Data from TipRanks shows a Strong Buy consensus on Rocket Lab, with 15 Buy ratings and three Holds. The average price target of $100.25 implies about 82% upside from current levels.

This article originally appeared on CoinCentral.