Rocket Lab Electron rocket lifts off from coastal pad, plume and smoke rising beside Rocket Lab logo.
Morgan Stanley just turned bullish on Rocket Lab, upgrading the stock to Overweight from Equalweight and raising its price target to a Street-high $105.
Neutron and Electron remain key catalysts, with a potential Neutron debut in early 2026 and rising launch cadence supporting the long-term growth narrative amid strong space and defense tailwinds.
**Short-term risk is elevated, as RKLB is overbought after a parabolic run, making pullbacks and consolidation more attractive entry points than chas…
Rocket Lab Electron rocket lifts off from coastal pad, plume and smoke rising beside Rocket Lab logo.
Morgan Stanley just turned bullish on Rocket Lab, upgrading the stock to Overweight from Equalweight and raising its price target to a Street-high $105.
Neutron and Electron remain key catalysts, with a potential Neutron debut in early 2026 and rising launch cadence supporting the long-term growth narrative amid strong space and defense tailwinds.
Short-term risk is elevated, as RKLB is overbought after a parabolic run, making pullbacks and consolidation more attractive entry points than chasing strength.
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Shares of Rocket Lab (NASDAQ: RKLB) received another major vote of confidence this month after financial heavyweight Morgan Stanley significantly upgraded both its rating and price target on the stock. On Jan. 16, 2026, the firm raised its rating from Equal Weight to Overweight and lifted its price target from $67 to a Street-high $105.
The timing of the upgrade is notable. Rocket Lab is already trading at all-time highs, closing the Jan. 16 session at $96.30. That move pushed the stock’s year-to-date gain to 38%, while its one-year performance now stands at an eye-catching 287%. With shares already deep into a parabolic run, Morgan Stanley’s bullish call naturally raises an important question for investors: Is there still upside left in the short-term, or has the market already priced it in?
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Morgan Stanley analyst Kristine Liwag framed the upgrade within a broader, optimistic outlook for the space technology sector in 2026. The firm has adopted what it calls an “Attractive” view on space tech, arguing that many of the drivers behind last year’s outperformance remain firmly in place.
It’s a similar view to what MarketBeat had previously noted for Rocket Lab and the overall sector.
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“2025 was a banner year for the space industry on several fronts,” Liwag wrote, adding that higher launch cadences, new product introductions, and policy support should fuel 2026.
For Rocket Lab specifically, Morgan Stanley highlighted two key catalysts: expectations for the company’s first Neutron rocket launch in early 2026, and continued increases in launch cadence for its Electron rocket.
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Neutron, in particular, represents a step-change opportunity for Rocket Lab, opening the door to larger payloads, higher-margin missions, and deeper exposure to defense and national security contracts.