Rocket Lab Corp (NASDAQ:RKLB) stock rose 5.71% (As on April 8, 11:35:01 AM UTC-4, Source: Google Finance) after Citizens Analyst Trevor Walsh upgraded the company to Outperform from Market Perform with an $85 price target. The company’s launch, defense space systems, and “clearer path toward higher-value” space services creates a risk/reward profile that is “meaningfully in Rocket Lab’s favor,” the firm tells investors in a research note. Analyst Trevor Walsh cited the company’s launch capabilities, defense space systems, and path toward higher-value space services as reasons for the upgrade. The stock is down approximately 3.0% year-to-date, compared with the S&P Aerospace & Defense ETF up 8.4% and the Russell 3000 down 3.8% over the same period. Citizens identified several factors creating what it views as a favorable entry point for the shares. The firm noted the Iran conflict and uncertainty around energy prices as weighing on stocks broadly. The upcoming SpaceX initial public offering has generated attention around the space sector. The Trump administration’s FY27 Department of War budget proposal totals $1.5 trillion and seeks approximately $88.5 billion in space-related funding. The proposal includes roughly $71.0 billion for Space Force, representing a 78% increase over FY26, and another $17.5 billion for Golden Dome.

Moreover, Central to this optimistic view is a robust backlog of orders totaling approximately $1.85 billion. A dominant portion of this figure stems from defense-related programs. Notably, this includes a major $1.3 billion contract awarded by the Space Development Agency (SDA) for the delivery of satellite constellations. In addition, a key development for Rocket Lab’s future capabilities is its pending acquisition of Germany’s Mynaric AG. Regulatory approval from German authorities for the $75 million deal has now been secured, with finalization expected before the end of April 2026. The integration of Mynaric’s laser communication technology is intended to enhance Rocket Lab’s vertical integration and fortify its internal supply chain.

Additionally, RKLB rose following the completion of its at-the-market equity offering program. The space launch and systems company sold 6,726,862 shares in at-the-market transactions for aggregate gross proceeds of approximately $474 million before commissions and expenses. Additionally, Rocket Lab entered into collared forward transactions involving 7,451,200 shares with minimum expected proceeds of approximately $474 million and maximum expected proceeds of approximately $642 million. The at-the-market offering program was initiated after Rocket Lab filed a prospectus supplement on March 17, 2026, to offer and sell shares with an aggregate offering price of up to $1 billion. The collared forward transactions are based on maturity dates scheduled for April 2028, though actual proceeds will depend on whether the company elects to settle prior to maturity and the cap and floor prices established in each transaction.