BofA Suggests Rocket Lab is Operating in a Space Industry Ripe for Consolidation, Forecasting a ‘Winner-Take-Most’ Outcome

Company Overview - Rocket Lab Corporation (NASDAQ:RKLB) is a space company that provides launch services and space systems solutions in the US, Canada, Japan, and internationally [4] Financial Performance - In Q3 2025, Rocket Lab's revenue reached $155 million, marking a 48% year-over-year increase, driven by the Space Systems segment which generated $114.2 million in revenue, a 16.7% sequential increase [2] - The Launch Services segment experienced a 12.3% sequential revenue decline, totaling $40.9 million, primarily due to delays in customer spacecraft delivery [2] Market Outlook - Bank of America raised Rocket Lab's price target to $60 from $50, maintaining a Buy rating, citing the space industry as ripe for consolidation with a potential 'winner-take-most' model [1] - Rocket Lab has a significant backlog of approximately $1.1 billion, with 53% from Space Systems and 47% from launch contracts, which include 49 total launches on contract [3] - For Q4, Rocket Lab provided revenue guidance of $170 to $180 million and anticipates the first test launch of its next-generation Neutron rocket early next year, with a projected launch cadence of three revenue-generating flights in the first year following the successful test [3]