New Morgan Stanley report reflects Wall Street’s generally optimistic view of Rocket Lab

Rocket Lab's stock in 2025
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Though Rocket Lab is still not in the black, a new positive analysis of the company this week from Morgan Stanley reflects Wall Street’s generally optimistic view of Rocket Lab during the past year.

Rocket Lab (NASDAQ:RKLB) had its price target raised by equities researchers at Morgan Stanley from $20.00 to $68.00 in a research report issued on Monday, Benzinga reports. The brokerage presently has an “equal weight” rating on the rocket manufacturer’s stock. Morgan Stanley’s price target would suggest a potential upside of 1.63% from the company’s current price.

The article at the link also notes that Morgan Stanley is not alone in giving Rocket Lab a positive report, and in fact in the past year it shows that the recommendations from many analysts to buy its stock have risen considerably. These positive reviews have been reflected in a steady rise in the company’s stock price in 2025, as shown by the graph on the right.

Nor are these reports written in a vacuum. In recent weeks Rocket Lab has signed a bunch of new launch contracts, some extending deals with old customers, some with new customers of some note.

Buying the stock of a startup like Rocket Lab always carries risk, but it appears Wall Street is beginning to see the future of this particular startup as very promising.

Morgan Stanley recommends buying Virgin Galactic stock

Capitalism in space: A report yesterday by Morgan Stanley recommended the purchase of Virgin Galactic stock because of its claim that it might repurpose its SpaceShipTwo suborbital spacecraft from space tourism to point-to-point transportation on Earth.

Morgan Stanley began coverage of Virgin Galactic’s stock on Monday with an overweight rating, saying the space tourism company’s shares will soar as it proves out a long-term plan of flying people around the world at hypersonic speeds. “A viable space tourism business is what you pay for today … but a chance to disrupt the multi-trillion-dollar airline [total addressable market] is what is really likely to drive the upside,” Morgan Stanley analyst Adam Jonas wrote in a note to investors.

…Morgan Stanley’s price target of $22 a share represents a 203% increase from Virgin Galactic’s current levels. The company outlined a three phase plan to investors during its roadshow earlier this year. While Morgan Stanley gave a $10 a share valuation to Virgin Galactic’s space tourism business, phases one and two of its plan, the firm sees $12 a share in value from phase three: Hypersonic point-to-point air travel.

The report caused the space company’s lagging stock to surge yesterday, though its value today ($9.41) remains well below its opening price ($12.53).

Personally I think anyone who takes Morgan Stanley’s advice is a fool. Virgin Galactic has spent fifteen years trying to develop this suborbital spacecraft, and has still not flown any customers. Moreover, the design is underpowered, which means I have serious doubts it could be used for any point-to-point transportation. To make that happen will require a complete redesign.

This recommendation by Morgan Stanley also suggests that this is not my investment firm of choice. The analysis here seems very poor and somewhat ignorant of the technology involved, and suggests instead that it was aimed merely to cause a jump in the price so that some of Morgan Stanley’s customers could get rid of their already-purchased stock without too much loss.