Rocket Lab Stock (RKLB) Soars on Major Hypersonic Tech Deals with US and UK Governments
Rocket Lab USA (RKLB) stock soared over 4% in pre-market trading on Tuesday after it landed major hypersonic tech deals as part of two multi-billion-dollar government programs in the U.S. and the UK. Within these programs, the company plans to compete for contracts and assignments by offering its HASTE (Hypersonic Accelerator Suborbital Test Electron) launch vehicle, along with its engineering, design, and launch services.
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Rocket Lab focuses on building and launching small rockets to carry satellites into space. Notably, the company’s hypersonic technology focuses on its HASTE launch vehicle, a modified version of the Electron rocket designed for high-speed suborbital missions.
Rocket Lab Joins U.S. and UK in Hypersonic Race
In the U.S., Rocket Lab has been chosen by the Air Force to take part in a massive $46 billion program called the Enterprise-Wide Agile Acquisition Contract (EWAAC). This long-term deal runs through 2031 and aims to fast-track the Air Force’s access to cutting-edge technologies and services across multiple areas.
Previously, the company had proven its rapid launch capabilities by completing three missions for the U.S. Department of Defense using its HASTE vehicle from Launch Complex 2 in Wallops Island, Virginia.
Meanwhile, in the UK, Rocket Lab has been selected by the Ministry of Defence to join its Hypersonic Technologies & Capability Development Framework (HTCDF). This £1 billion (around $1.3 billion) initiative is focused on quickly advancing the U.K.’s hypersonic capabilities. As a chosen supplier, Rocket Lab can now compete to offer tech, services, and testing support for the U.K.’s efforts in this critical area.
The company’s CEO, Sir Peter Beck, described the achievement as a proud milestone for the HASTE team, emphasizing Rocket Lab’s strong commitment to driving innovation and advancing solutions in hypersonic technology development.
Is Rocket Lab Stock a Buy?
According to TipRanks, RKLB stock has received a Moderate Buy consensus rating, with eight Buys and five Holds assigned in the last three months. The average price target for Rocket Lab is $26.59, suggesting a potential upside of 39% from the current level.
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