Free Trial

Rocket Lab Expands Into Payloads: Should You Be Paying Attention?

Lift-off for Electron's 65th launch Source: Official Rocket Lab Photos

Key Points

  • Rocket Lab is acquiring Geost for up to $275 million, marking its entry into the high-value payload segment.
  • Following the announcement, multiple analysts raised their price targets, citing the deal’s strategic importance.
  • RKLB has surged over 500% in the past year and is holding firm near key resistance, with technical support forming around $25.
  • Five stocks to consider instead of Rocket Lab USA.

Rocket Lab USA Today

Rocket Lab USA, Inc. stock logo
RKLBRKLB 90-day performance
Rocket Lab USA
$26.91 +0.19 (+0.71%)
As of 06/4/2025 04:00 PM Eastern
52-Week Range
$4.20
$33.34
Price Target
$25.18

Rocket Lab USA, Inc. NASDAQ: RKLB has taken another significant step in its evolution from a launch provider to a vertically integrated space and defense company. The company recently announced a definitive agreement to acquire Geost, a developer of electro-optical and infrared (EO/IR) payloads for national security satellites. 

With this acquisition, Rocket Lab officially enters the payload segment, broadening its capabilities, improving its margins, and positioning itself as a full-service provider in the growing national security space race.

Following the announcement, RKLB received several bullish analyst upgrades. Firms highlighted the deal's strategic value and its long-term implications for the company’s position in the defense and aerospace sectors.

Rocket Lab to Acquire Geost for $275 Million

Last week, Rocket Lab unveiled plans to acquire Geost in a deal valued at up to $275 million, including $125 million in cash and $150 million in Rocket Lab stock, along with a potential $50 million earnout. The deal is expected to close in the second half of this year. It includes Geost’s intellectual property, manufacturing infrastructure in Arizona and Virginia, and its team of 115 highly skilled engineers and technical staff.

Geost brings over two decades of experience developing EO/IR payloads used in missile tracking, tactical intelligence, surveillance, reconnaissance (ISR), and space domain awareness. These are all key priorities for the U.S. Department of Defense and are aligned with initiatives such as the Space Development Agency’s Tracking Layer and Golden Dome programs.

The move expands Rocket Lab’s value proposition beyond launch and satellite buses into the high-value payload space, reducing integration risks and increasing control over mission cost and timelines, which is particularly important for defense customers.

Rocket Lab CEO Peter Beck said of the acquisition: “With the acquisition of Geost, we’re bringing advanced electro-optical and infrared payloads in-house to support secure, responsive, and cost-effective systems at scale.”

Analysts See Upside Following Announcement

Rocket Lab USA Stock Forecast Today

12-Month Stock Price Forecast:
$25.18
-6.42% Downside
Moderate Buy
Based on 14 Analyst Ratings
Current Price$26.91
High Forecast$35.00
Average Forecast$25.18
Low Forecast$7.00
Rocket Lab USA Stock Forecast Details

The market took notice. On May 28, several analysts raised their price targets for Rocket Lab. Roth Capital raised its target price from $25 to $35, while maintaining a Buy rating. Stifel Nicolaus analyst Erik Rasmussen also increased his target price from $29 to $34, citing the strategic importance of the Geost acquisition and its potential to expand Rocket Lab’s addressable market significantly.

Analysts at Stifel emphasized that the acquisition strengthens Rocket Lab’s foothold in defense and aerospace and supports its long-term growth strategy by unlocking new revenue streams. Needham & Company also weighed in positively, increasing its target from $28 to $32 and maintaining its Buy rating.

In total, RKLB now has 14 analyst ratings, with a consensus rating of Moderate Buy. That said, the average price target currently sits at $25.18, implying a modest downside from current levels.

This reflects both the stock’s sharp run-up over the previous year, with gains exceeding 500%, and some skepticism surrounding its lofty valuation and lack of profitability, which have yet to align with the company’s long-term vision.

Technical Momentum and Market Positioning

Despite mixed earnings, momentum is clearly on Rocket Lab’s side. The stock has increased by over 536% in the past year and 42% so far this quarter, garnering significant attention from retail investors. Even during the recent broader market corrections, RKLB held up well and is now trading just beneath key resistance around the $30 level.

From a technical standpoint, the $25 level is shaping up as a potential new support zone. Investors looking to enter or add to positions may want to wait for some sideways consolidation or a retest of this level to confirm a higher low before chasing a breakout. Thereafter, a clean move above $30 could pave the way for new highs.

A Transformative Step in the Company’s Mission

Rocket Lab’s planned acquisition of Geost is more than just another deal; it’s a transformative step in the company’s mission to become a vertically integrated defense and space contractor. With analysts bullish on the move and momentum on its side, RKLB remains a name to watch, especially if it continues to execute and expand its presence in the national security space.

Should You Invest $1,000 in Rocket Lab USA Right Now?

Before you consider Rocket Lab USA, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Rocket Lab USA wasn't on the list.

While Rocket Lab USA currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

The Next 7 Blockbuster Stocks for Growth Investors Cover

Wondering what the next stocks will be that hit it big, with solid fundamentals? Enter your email address to see which stocks MarketBeat analysts could become the next blockbuster growth stocks.

Get This Free Report
Ryan Hasson
About The Author

Ryan Hasson

Contributing Author

Technical Analysis, Momentum Trading, Risk Management

Like this article? Share it with a colleague.

Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Rocket Lab USA (RKLB)
1.99 of 5 stars
$26.91+0.7%N/A-72.73Moderate Buy$25.18
Compare These Stocks  Add These Stocks to My Watchlist 

Featured Articles and Offers

Recent Videos

Top 3 Defense Stocks to Profit From $175 Billion Golden Dome
Top 5 Stocks for June: AI Picks That Aren’t NVIDIA
This Unique Robotaxi Play Could Deliver 10X Returns

Stock Lists

All Stock Lists

Investing Tools

Calendars and Tools

Search Headlines