Rocket Lab USA, Inc. (RKLB): A Bull Case Theory
From Yahoo Finance: 2025-04-01 08:44:00
Rocket Lab USA, Inc. (RKLB) recently secured a $5.6 billion contract with the U.S. Space Force, allowing the company to compete for national security satellite launches through 2029. This marks a significant milestone for RKLB and positions them as a major player in the space industry, alongside other established providers.
The contract framework spans five years with a potential extension to 2034, including at least 30 missions. While RKLB must compete for each launch based on cost, reliability, and schedule, this opportunity signifies their evolution from small-satellite launches to medium-to-heavy payload missions.
Key to RKLB’s success is the Neutron rocket, a reusable medium-lift vehicle designed for payloads up to 13 tons. The rocket, set for its maiden flight in late 2025, will determine RKLB’s ability to secure long-term defense and commercial contracts, with the company’s future hinging on Neutron’s success.
While RKLB’s inclusion in the NSSL program is a significant achievement, challenges lie ahead as they navigate Neutron’s development and strive to meet rigorous mission assurance standards. Investors should anticipate potential setbacks but recognize the potential for RKLB to establish itself as a premier launch provider in the industry.