Morgan Stanley reiterated its 'Overweight' rating and $105 price target on Rocket Lab (RKLB) late Wednesday, following the company's announcement of an $8 billion acquisition of Iridium Communications. Shares of Rocket Lab rose over 2% in overnight trading after the regular session closed marginally lower. The brokerage firm stated the Iridium acquisition moves Rocket Lab toward a SpaceX-style vertically integrated space platform, though SpaceX retains major scale and cost advantages. Morgan Stanley cited the deal's expansion of Rocket Lab's addressable market by adding connectivity services to its existing launch, spacecraft manufacturing and space systems businesses. The acquisition combines Rocket Lab's manufacturing capabilities with Iridium's global communications network, L-band spectrum and more than 500 partners.
Morgan Stanley Reiterates Overweight Rating With $105 Price Target
Morgan Stanley maintained its 'Overweight' rating and $105 price target on Rocket Lab, implying about 26% upside from current levels. The firm raised its bull-case target to $293 from $185, implying a 252% upside, citing greater launch and connectivity potential after the Iridium deal, according to Investing.com.
Morgan Stanley stated it reviewed its valuation approach for Rocket Lab after the SpaceX IPO and Rocket Lab's acquisition of Iridium Communications. While the firm noted that SpaceX still has major scale and cost advantages, it said Rocket Lab's commercial progress and Iridium deal are moving the company toward a SpaceX model.
The firm said the acquisition positions Rocket Lab as a "vertically integrated space platform," expanding its total addressable market by adding connectivity services to its existing launch, spacecraft manufacturing and space systems businesses. Morgan Stanley said it sees a 4.8x positive risk-reward skew for the stock.
RKLB stock ended Wednesday's regular session marginally lower, with shares down 18% for the week.
Rocket Lab Acquires Iridium Communications for $8 Billion
Rocket Lab announced last week that it will acquire Iridium in a cash-and-stock deal, valuing the satellite communications company at $8 billion, or $54 per share. The deal combines Rocket Lab's launch and satellite manufacturing capabilities with Iridium's global communications network, L-band spectrum and more than 500 partners.
CEO Peter Beck said Rocket Lab already had launch and spacecraft manufacturing, but "the third leg of the stool was always an application." By adding Iridium, Beck said Rocket Lab becomes a "self-launching company."
In Rocket Lab's investor update, Beck called the combined business a "fully integrated self-launching space superpower," saying Iridium brings continuous pole-to-pole coverage across "every ocean, every mountain and every airway." The Iridium deal pushes Rocket Lab beyond launch and spacecraft manufacturing into recurring satellite services, including Internet of Things connectivity, direct-to-device services, positioning, navigation and timing, and safety-of-life communications. The acquisition is expected to close in mid-2027.
Retail Sentiment Shifts to Bearish Amid 18% Weekly Decline
On Stocktwits, retail sentiment for RKLB shifted to 'bearish' from 'bullish' over the past week, amid a 34% rise in message volume.
![RKLB sentiment and message volume]()
One user said, "$RKLB Morgan Stanley's 200 point jump looks good sooner than latter. Are you in or on the side of road thumbing it."
Another user noted Morgan Stanley's bull case price target hike and said, "That's a big signal on how far the long-term setup can stretch if execution keeps improving. Still a high-beta name, but the valuation math is starting to look like the market is pricing in much bigger upside."
RKLB stock has surged 115% over the past year.
FAQ
What price target did Morgan Stanley set for Rocket Lab stocks?
Morgan Stanley reiterated its $105 price target on Rocket Lab (RKLB), implying about 26% upside from current levels. The firm also raised its bull-case target to $293 from $185, implying a 252% upside.
What is the value of Rocket Lab's Iridium acquisition?
Rocket Lab announced last week that it will acquire Iridium Communications in a cash-and-stock deal valued at $8 billion, or $54 per share. The acquisition is expected to close in mid-2027.
How did RKLB stocks perform this week?
RKLB stock ended Wednesday's regular session marginally lower and was down 18% for the week. However, shares rose over 2% in overnight trading late Wednesday following Morgan Stanley's reiterated rating.
