Rocket Lab rides new launch deal to four-month high

Rocket Lab USA (NASDAQ:RKLB) rallied on Tuesday after the company inked the largest Electron agreement in its history as Japanese Earth observation company Synspective committed to ten launches.

Roth MKM reiterated a Buy rating on the stock following the development. Analyst Suji Desilva said the multi-year, multi-launch contract with Synspective further strengthens the company’s long-term pipeline visibility. “We are encouraged that a long-standing RKLB customer that has conducted multiple launches since 2020 with RKLB, and plans more this year, was comfortable committing to a new ten-launch deal,” noted Desilva.

Bank of America also has a Buy rating on Rocket Lab (RKLB). The firm noted recently that RKLB presents one of the most affordable and consistent launch services available to U.S. customers. Analyst Ronald Epstein said RKLB’s efforts toward reusability and manufacturing satellite components will provide increased exposure to the growing small satellite market. The company is also seen as poised to benefit from greater U.S. government work with the opening of Launch Complex 2 in Virginia.

Shares of Rocket Lab USA (RKLB) were up 9.10% in early trading on Tuesday to $4.74, which is on the low end of the 52-week range of $3.47 to $8.05. The stock traded as high as $4.85 during the session, which was the highest level seen since February. Short interest on RKLB stands at 18.7% of the total float.