Rocket Lab shares jump 7.21% after-hours on Morgan Stanley upgrade and $816M SDA contract win.

Rocket Lab surged 7.21% in after-hours trading following a significant upgrade from Morgan Stanley, which raised its price target to $105 from $67 and reclassified the stock as "Overweight." The move cited growing recognition of Rocket Lab as a strategically important space company with long-term growth potential, driven by its 52% year-over-year revenue growth and a $816 million contract with the U.S. Space Development Agency for 18 advanced missile-tracking satellites. Analysts highlighted the contract as a milestone, positioning Rocket Lab as a prime contractor for future defense projects, including the Golden Dome program, while underscoring its operational momentum from successful Electron launches and progress on the Neutron rocket. The upgrade, coupled with the contract win, reinforced investor confidence in the company’s expanding role in the space technology sector despite ongoing unprofitability.