Why did RKLB stock jump today?

Morgan Stanley upgraded RKLB stock to Overweight and raised its target to US$105 from US$67, citing the US$816 million SDA Tranche 3 award and strong growth. The call reinforced the defense backlog thesis, helping shares rise about 6% on January 17 as investors priced in better contract visibility and potential operating leverage ahead.

What is Morgan Stanley’s new Rocket Lab price target?

Morgan Stanley set a new Rocket Lab price target of US$105, up from US$67, alongside an upgrade to Overweight. The firm highlighted the SDA Tranche 3 Tracking Layer contract and improving growth trends as key drivers for the higher target. Investors should monitor backlog conversion, margins, and launch cadence to validate the case.

Is RKLB stock a buy for Canadian investors?

RKLB stock offers growth exposure to space and defense, but trades at high multiples with negative earnings. Consider a small position size, scale entries, and manage FX costs. Watch the February 26, 2026 earnings, space systems margins, and Neutron updates. If execution stays strong, add on dips; if not, keep exposure modest.

What are the key risks to RKLB stock now?

Main risks include rich valuation, negative margins, and execution around launch cadence and spacecraft deliveries. Contract timing can add volatility. Insider selling and macro shifts in defense budgets could weigh on sentiment. Technicals are stretched, so a pullback toward support is possible if momentum fades after the post-upgrade surge.

Global Market Insights

RKLB Stock Today: January 17 Morgan Stanley Upgrade Sparks 6% Jump

ByHuzaifa Zahoor January 17, 2026January 17, 2026

RKLB stock rallied about 6% on January 17 after a Morgan Stanley upgrade to Overweight and a higher Rocket Lab price target of US$105 from US$67. Shares of RKLB traded near US$96.30 as the call cited the US$816 million SDA Tranche 3 Tracking Layer award and strong revenue momentum. For Canadians, this move highlights growing defense exposure and contract visibility. We break down the drivers, valuation setup, technical picture, and practical steps to consider when trading a U.S.-listed name from Canada.