Rocket Lab (RKLB) shares closed meaningfully higher on May 22 after the company announced a fresh $90 million contract from the U.S. Space Force.
The Space Systems Command agreement tasks RKLB with designing, manufacturing, integrating, and operating two geostationary satellites hosting the Heimdall space domain awareness payload.
Rocket Lab stock has been a lucrative investment in 2026, currently up more than 130% versus its year-to-date low.
Does It Warrant Buying Rocket Lab Stock?
The U.S. Space Force deal is significant because it represents the company’s first satellite production program for geostationary orbit, extending its vertically integrated mission model into an entirely new orbital regime.
Under the terms of the contract, RKLB will serve as prime contractor handling spacecraft design and manufacturing, payload integration, launch logistics, and on-orbit operations for five years.
The satellites will be built on its Lightning bus, which is already in production for national security programs.
Stifel views the win as meaningful for Rocket Lab shares, noting that contracting momentum is building for geostationary orbit from Space Force opportunities.
They expect this to be the first of multiple opportunities in the geostationary orbit for the company.
Should You Load Up on RKLB Shares Today?
The geostationary satellite sector is a $20 billion addressable market, giving Rocket Lab significant room to expand its serviceable market.
The transition from low Earth orbit to geostationary orbit is expected to be “straightforward” given the firm’s existing capabilities in developing radiation-hardened and radiation-tolerant components.
This contract cements RKLB stock positioning as an end-to-end services provider spanning design, launch, and operations.
Adding to positive sentiment on Friday, Rocket Lab announced a successful satellite launch for Synspective, marking the ninth successful deployment of Synspective’s StriX satellites.
RKLB’s strong Q1 earnings and a record $2.2 billion backlog that has more than doubled from the prior year make up for additional reasons to stick with Rocket Lab.
What’s the Consensus Rating on Rocket Lab?
Wall Street is also bullish on the company’s recent contract wins, including the largest launch in company history covering five Neutron and three Electron launches, a $190 million hypersonic test deal for 20 HASTE missions, and now the $90 million Space Force GEO satellite program.
According to Barchart, the consensus rating for RKLB shares sits at “Moderate Buy,” with price targets as high as $150, indicating potential upside of another 11% from here.
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On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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