Institutional Investors Flock to Rocket Lab as Space Sector Soars

The commercial space industry continues its upward trajectory in 2025, with one company attracting particularly strong attention from major financial institutions. Rocket Lab USA has become a magnet for investment firms, with multiple new institutional positions established during October alone. This surge in professional investor interest signals growing recognition of the company’s potential as a compelling alternative to SpaceX within the burgeoning space transport market.

Wall Street Analysts Issue Bullish Upgrades

Market researchers have released a series of optimistic assessments that highlight Rocket Lab’s promising outlook:

• Morgan Stanley triples price target from $20 to $68
• KeyBanc raises target from $50 to $75
• Baird initiates coverage with “Outperform” rating and $83 price objective

Kristine Liwag of Morgan Stanley positions Rocket Lab as a publicly-traded alternative to SpaceX, offering investors direct exposure to the expanding space transportation sector. Baird analysts emphasized the company’s impressive 94 percent success rate in rocket launches as a key competitive advantage.

Should investors sell immediately? Or is it worth buying Rocket Lab USA?

October Buying Spree Reveals Strong Conviction

Recent 13F filings disclose substantial institutional acquisitions. MGO One Seven LLC established a $584,000 position, while Apollon Wealth Management LLC purchased 8,985 shares on October 18. These transactions represent just a fraction of the broader institutional interest.

With 858 institutional investors collectively holding 308.5 million shares, professional money managers control 63.75 percent of all outstanding equity. This exceptionally high institutional ownership percentage typically provides price stability during market fluctuations and indicates widespread confidence in the company’s business strategy.

Moderate Buy Rating Amid Rapid Reassessment

Despite the dramatic price target increases from multiple firms, the consensus among 13 Wall Street analysts remains a “Moderate Buy” recommendation with an average price target of $42.27. However, the recent wave of upward revisions suggests this more conservative assessment may already be outdated.

The substantial institutional participation, representing nearly two-thirds of all shares, provides Rocket Lab with a solid foundation of long-term oriented investors who believe in the growth prospects of the commercial space sector. This deep professional backing underscores the company’s position as a serious contender in the evolving space transportation industry.