Rocket Lab (RKLB) pushed back the arrival of its Neutron reusable rocket at the launchpad to 2027, from the fourth quarter of 2026 previously, after finding a propellant dome manufacturing issue that the company says it has since resolved. Shares fell as much as 16% and were down 9.8% at 1:48 p.m. ET, after KeyBanc cut its price target to $100 from $135 and Clear Street cut its target to $105 from $129, with both keeping their ratings. Based on the $59.18 close the previous day, the $100 and $105 targets imply upside of 69% and 77%. The article notes Rocket Lab ended the second quarter of 2026 with a record backlog of $2.36 billion, pointing to strong demand for its launch services.
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Rocket Lab pushed the first launch of its Neutron rocket into 2027, sending shares down 6.6% to $55.25 after they had fallen as much as 16% early in the session. CEO Peter Beck cited voids in the carbon-composite forward propellant dome, with replacement and testing running through Q1 2027. Meanwhile, second-quarter revenue reached $234.07 million, up 62%, and backlog rose 137% to $2.36 billion, driven by an $816 million Space Development Agency award. Clear Street cut its target to $105 from $129 and TD Cowen cut to $90 from $120, saying the slip pushes growth and profitability out. Free cash flow was -$321.8 million in 2025, and the company raised $1.53 billion through stock sales in the first half of 2026.
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Rocket Lab now expects its Neutron rocket's first launch in 2027, not the fourth quarter of 2026 as previously targeted. CEO Sir Peter Beck said an inspection found voids in the carbon composite of a newly built forward dome for the first-stage propellant tank, so the company is building a replacement with a reworked process. No new launch date will be set until the first stage passes testing, which is expected within the first quarter of 2027. Meanwhile, second-quarter revenue rose 62% year over year to a record $234 million, with space systems up 94%. However, the company still posted an adjusted EBITDA loss of $8.8 million and negative free cash flow of $110 million in the quarter. The author argues the stock, about 65% below its May record close, still looks too expensive at roughly 35 times sales until Neutron has a launch date.
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Rocket Lab (NASDAQ: RKLB) shares fell 9.8% in the morning session after the company, in an SEC filing, moved the target date for the inaugural launch of its Neutron rocket to 2027 as development and manufacturing and testing milestones continue. Aviation Week reported that CEO Peter Beck cited issues with first-stage propellant tank manufacturing on the carbon-composite vehicle. The stock is down 29.9% year to date at $53.25 per share, 64.6% below its 52-week high of $150.23 from May 2026. Seven days earlier, the stock had dropped 4.4% as Middle East escalation pushed crude oil up more than 5% and the 10-year Treasury yield near 5.35%. The stock has had 85 moves greater than 5% over the past year.
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