Rocket Lab gains as analysts point to upside from the Geost acquisition

Rocket Lab Corporation (NASDAQ:RKLB) traded higher in early action on Wednesday after the company’s acquisition of Geost is seen as boosting the positioning to land more space-based national security contracts.

Bank of America analyst Ronald Epstein noted that Rocket Lab’s (NASDAQ:RKLB) acquisition of Geost will provide key payload capabilities serving national security space priorities like Golden Dome and Tranche 3 of Space Development Agency’s Tracking Layer missile defense constellation. “The deal adds to RKLB’s end-to-end space systems capabilities, providing access to mission-critical optical systems payloads alongside existing assets in launch and space systems’ development, including RKLB’s recent announced acquisition of space-based communications provider Mynaric,” he highlighted.

BofA also sees the acquisition as timely for Buy-rated Rocket Lab (RKLB), given last week’s announcement that the Golden Dome missile defense system would be advancing under a three-year, $175 billion architecture. “Given the breadth and rapid timeline of the program, we see opportunities for innovative space and defense providers to gain meaningful share,” noted Epstein.

Wells Fargo analyst Matthew Akers said the Geost deal looks like the next logical step in Rocket Lb’s (RKLB) quest to create a vertically integrated space services company.

Meanwhile, Stifel maintained a Buy rating on Rocket Lab (RKLB) and boosted its price target to $34 following the Geost announcement.

Shares of Rocket Lab (RKLB) were up 2.7% in premarket trading on Wednesday, after zooming 13.1% higher on Tuesday. Short interest on RKLB stands at 12.9% of the total float.