Is Rocket Lab (RKLB) Stock Still a Buy After Its 25% Run This Week?

TLDR

• Rocket Lab stock hit a new all-time high of $133.18, rising 25.7% in a week
• Q1 2026 revenue came in at $200.4 million, beating analyst estimates of $189.7 million
• The company posted a record $2.2 billion backlog, more than doubling year-over-year
• Deutsche Bank raised its price target 64% to $120; Clear Street initiated at $150
• RKLB now trades at roughly 108x sales, well above its five-year average of 14.6x

Rocket Lab (RKLB) had a quiet start to May. Then the Q1 numbers dropped — and everything changed.

Rocket Lab USA, Inc., RKLB

The company reported first-quarter 2026 results after the close on May 7, and the market’s reaction was immediate. RKLB hit a new all-time high of $133.18 on May 14, capping a 25.7% gain from the prior Friday’s close.

Revenue for the quarter came in at $200.4 million — a record — beating the analyst consensus of $189.7 million by more than $10 million. That’s a 63.5% jump year-over-year.

Gross margin hit 38.2% in Q1, another company record. The backlog now stands at $2.2 billion, more than double where it was a year ago.

Analyst Upgrades Add Fuel

Deutsche Bank kept its buy rating and raised its price target 64% — from $73 to $120 — on Tuesday. The move signaled confidence that RKLB’s growth story has room to run.

A day later, Clear Street initiated coverage with a buy rating and a $150 price target, one of the more bullish calls on the stock.

These aren’t small tweaks. Both targets were set after the all-time high print, suggesting analysts see value even at elevated levels.

What’s Driving the Growth

Rocket Lab’s Space Systems division has overtaken Launch Services as the primary revenue engine. That shift points to the company’s push toward becoming a vertically integrated player rather than just a launch provider.

Defense wins have played a role too. The $2.2 billion backlog includes major defense contracts, which bring more predictable revenue streams.

For Q2 2026, Rocket Lab guided revenue of $225 million to $240 million, with gross margin expected between 33% and 35%.

That guidance implies continued sequential growth, though margin is expected to step down slightly from Q1’s record 38.2%.

The Neutron rocket, Rocket Lab’s larger launch vehicle targeting the commercial and government market, is approaching its commercial debut. Investors have been watching that program closely as a potential long-term revenue driver.

The stock’s valuation remains a point of debate. At roughly 108x sales, RKLB trades at a steep premium to its own five-year average of 14.6x.

That multiple reflects growth expectations, but it also leaves little room for error if results disappoint or guidance softens.

Still, with the backlog at record levels and analyst targets sitting above the current price, the near-term setup has continued to attract buyers.

Rocket Lab stock closed at $126.94 on May 15, pulling back from the all-time high but still up strongly on the week.

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