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

Rocket Lab Corporation (NASDAQ:RKLB) is one of the best Reddit stocks to invest in right now. On November 19, Bank of America raised the firm’s price target on Rocket Lab to $60 from $50 with a Buy rating on the shares. BofA believes that the space industry is ripe for consolidation due to the size of anticipated opportunities. The firm thinks that this disruption leads to a winner-take-most model, where success depends on strategic vision and effective integration.

In Q3 2025, Rocket Lab’s revenue reached $155 million, which marked a 48% increase year-over-year, driven by the company’s Space Systems segment, which delivered $114.2 million in revenue. This was a 16.7% sequential increase due to strong satellite manufacturing activity. In contrast, the Launch Services segment saw a 12.3% sequential revenue decline, totaling $40.9 million, primarily attributed to delays in customer spacecraft delivery.

The company successfully executed its 16th mission of the year, equaling its launch record from the previous year, and maintains a significant total backlog of ~$1.1 billion, with a slight majority (53%) coming from Space Systems and the remaining 47% from launch contracts, which include 49 total launches on contract. Looking ahead to Q4, Rocket Lab provided revenue guidance of $170 to $180 million. The company 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.

Rocket Lab Corporation (NASDAQ:RKLB) is a space company that provides launch services and space systems solutions in the US, Canada, Japan, and internationally.

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Disclosure: None. This article is originally published at Insider Monkey.