Why Rocket Lab Stock Is Taking Off In Today’s Premarket
Rocket Lab CEO Peter Beck met with Florian Herrmann, the head of the Bavarian State Chancellery, which led traders to wonder if it could secure additional deals in Europe.
Rocket Lab USA (RKLB) stock gained over 1% in premarket trading on Tuesday after the launch services provider signed its second multi-launch contract with a Japanese satellite data and analytics firm.
The contract with Synspective, a synthetic aperture radar (SAR) satellite data provider, sanctions an additional 10 dedicated launches of its Electron vehicles, bringing the total number of launches for the Japanese firm to 21 and making it the largest single customer for the Electron program.
Rocket Lab has been Synspective’s sole launch provider to date, successfully deploying six StriX satellites across six dedicated launches from Rocket Lab Launch Complex 1 in New Zealand. The subsequent 21 Synspective launches will take place from the same launch site, the company said.
“Rocket Lab’s precision and track record have consistently enabled us to stay on schedule and achieve our mission objectives. As we move forward with 21 launches, our continued collaboration is crucial to accelerating the deployment of our SAR satellites and the growth of our data platform,” Synspective CEO Motoyuki Arai said.
Retail sentiment on Stocktwits about Rocket Lab was still in the ‘bearish’ territory at the time of writing.
Reacting to the new contract, some users began to express optimism toward the stock. One user noted that the contract could add an additional $100 million in revenue for Rocket Lab.
Another user noted that the valuation is still cheap and the stock could potentially rise to $120.
Separately, Rocket Lab CEO Peter Beck met with Florian Herrmann, the head of the Bavarian State Chancellery, which led traders to wonder if it could secure additional deals in Europe.
The company is also working on a larger rocket, Neutron, meant for launching groups of satellites. Rocket Lab’s spacecraft have been chosen for major space missions, including NASA’s journeys to the Moon and Mars.
Rocket Lab stock has surged nearly 85% this year.
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