Rocket Lab Stock: Weathering the Storm, Time for a Comeback?

Core Viewpoint - Rocket Lab USA Inc. has experienced a volatile start to 2025, with shares down nearly 23% year-to-date and over 40% below their 52-week highs, despite showing resilience compared to major tech giants [1][2]. Technical Analysis - The stock remains above its 200-day simple moving average (SMA), indicating potential strength, and recently pulled back to around the $15 level, which aligns with previous resistance and key support during the current market correction [2][3]. - Holding above the$15 level could signal a reacceleration of bullish momentum if broader market sentiment improves [3]. Recent Developments - Rocket Lab successfully launched its 61st Electron mission on March 15, 2024, deploying a satellite for iQPS, part of a larger agreement for six launches in 2025 and two in 2026 [4]. - The company announced a quick-turnaround mission for OroraTech, showcasing operational efficiency with a launch scheduled four months after contract signing [5]. - On March 11, Rocket Lab acquired a majority stake in Mynaric AG for $75 million, expanding its capabilities in optical satellite communication and aligning with a$515 million U.S. Space Development Agency contract [6]. - The U.S. Department of Defense awarded Rocket Lab's National Security division a spot on a $5.6 billion indefinite-delivery/indefinite-quantity (IDIQ) launch contract, positioning the company to compete for future national security missions [7]. Market Sentiment and Forecast - The stock has a 12-month price forecast of$22.72, indicating a potential upside of 15.75%, with a Moderate Buy rating based on 12 analyst ratings [8][9]. - The average price target has significantly increased from $7.46 a year ago, reflecting positive changes in the company's growth and operational perspective [9]. - Despite the positive outlook, short interest remains elevated at 15.7% of the float, down from over 20% in Q4 2024, indicating some skepticism among investors [9].