RKLB Stock Heads For 10-Month Lows On Neutron Launch Delay – But Roth Capital Sees The Bright Side

• Clear Street lowered its price target on the stock to $105 from $129 but kept a ‘Buy’ rating.
• The firm said the medium-lift rocket market opportunity is ‘only getting bigger.’
• KeyBanc lowered the price target to $100 from $135 but maintained an ‘Overweight’ rating.

Rocket Lab (RKLB) shares drew investor attention on Thursday as Wall Street reacted to news that the debut of its much-anticipated Neutron rocket has been postponed to 2027. 

RKLB shares tumbled nearly 11% in pre-market trading and were on track to reach their lowest level since December 2025.

Wall Street Remains Bullish Despite Neutron Launch Delay

Roth Capital maintained a ‘Buy’ rating with a $110 price target, according to The Fly. The target is more than double the current trading price of roughly $53. The firm argued that Rocket Lab is prioritizing the quality and reliability of its rockets over “speed to pad.”

Roth believes Rocket Lab’s investments in Neutron manufacturing and launch infrastructure could help it rapidly increase production once the rocket completes its first few flights successfully.

Clear Street lowered the price target to $105 from $129 but kept a ‘Buy’ rating, with analyst Greg Pendy stating that while the delay pushes Rocket Lab’s growth and profitability back by three quarters, the medium-lift opportunity is “only getting bigger.”

Meanwhile, KeyBanc lowered its price target to $100 from $135 while maintaining an ‘Overweight’ rating, according to The Fly. The revised target still implies around 47% upside from the stock’s current trading price.

Why Rocket Lab Postponed Neutron Test

On Wednesday, Rocket Lab CEO Peter Beck said the company discovered manufacturing defects in the forward propellant dome of Neutron’s first stage, which holds the rocket’s fuel. Beck added that the company was unwilling to compromise on safety and reliability.

“They don’t necessarily mean that the dome would fail on flight, but our practice is to proceed only when we believe the system has the appropriate margins,” Beck said.

Rocket Lab has identified the fixes and expects the new dome to be completed before the first quarter (Q1) of 2027.

Repeated Setbacks For Neutron

First unveiled in 2021, Neutron has faced repeated setbacks over its launch timeline. The rocket was originally expected to launch in 2024, but was later pushed to 2025, then late 2026, and now 2027.

Neutron is central to Rocket Lab’s ambitions and was seen as a competition for SpaceX's Falcon 9 in the reusable medium-lift rocket market. However, SpaceX is looking to wind down its Falcon 9 operations in favor of the much larger Starship rockets.

Retail Calls RKLB Selloff A ‘Huge Overreaction’

Retail sentiment on Stocktwits surrounding RKLB trended in the ‘bearish’ territory over the past 24 hours, amid a 565% jump in message volumes.

One user called the selloff a “huge overreaction.”

Another user said, “everyone’s panicking about a delay we all kind of saw coming.”

RKLB shares are down more than 22% year-to-date, on par with rival Virgin Galactic Holdings’ (SPCE) 22% fall. AST SpaceMobile’s (ASTS) has tumbled nearly 50% during the period.

Also read: RDW, YSS Stocks Extend Losing Streaks: Piper Sandler Sees Competition, Growth Risks

For updates and corrections, email newsroom[at]stocktwits[dot]com.