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Rocket Lab (Nasdaq: RKLB) has been an exceptionally lucrative investment in recent months, but a senior Baird analyst is convinced this aerospace stock isn’t out of juice just yet.

According to Peter Arment, the company based out of Long Beach, CA is the finest alternative to SpaceX as it isn’t currently available for public trading. “SpaceX 2.0 primed for liftoff,” he wrote in a research note.

At the time of writing, RKLB stock is up roughly 300% versus its year-to-date low in early March.

Rocket Lab stock could surpass $200 over the long term

Peter Arment assumed coverage of Rocket Lab stock this morning with an “outperform” rating – with an $83 price target, indicating potential upside of more than 20% from here.

Longer term, the Baird analyst even sees the company’s share price more than tripling to over $200, “assuming solid launch cadence growth is combined with reusable rocket technology development.”

The investment firm expects continued rapid growth in the space launch market to remain a major tailwind for RKLB shares.

Over the past four years, that market has grown at an annualised rate of a remarkable 22% – and Arment sees it keeping in the mid-teens, at least through the end of this decade (2030).

Why else is Peter Arment bullish on RKLB shares

Baird recommends owning Rocket Lab shares for its 94% mission success rate and its $8.5 million Electron launch vehicle that currently dominates the small-lift launch market.

“RKLB’s $50 million Neutron rocket is targeting first flight in 2H25/early-2026 – competing with the larger SpaceX Falcon 9 rocket in the medium-lift launch market,” it added.

Moreover, the Nasdaq-listed firm has a strong enough balance sheet to pursue growth via mergers and acquisitions as well. Note that Rocket Lab has already made five successful acquisitions since 2020.

Rocket Lab is scheduled to report its quarterly earnings on November 11^th.

Consensus is for it to report 9 cents per share of loss – about 10% better than the same quarter last year. The financial release will likely prove a catalyst for RKLB stock in the near term.

Key takeaways from Baird’s note on Rocket Lab

Rocket Lab’s recent surge may tempt investors to lock in gains, but Peter Arment argue the runway is far from exhausted.

With a proven small-lift platform, a medium-lift contender nearing launch, and a 94% mission success rate, RKLB is positioned as a rare public proxy for the space economy.

Its expanding M&A footprint and disciplined capital strategy further reinforce long-term potential.

While near-term volatility may accompany earnings season, the broader narrative remains intact: Rocket Lab is building a vertically integrated launch ecosystem with real commercial momentum.

For growth-oriented investors, this isn’t the end – it’s just stage one separation. Note that Wall Street’s consensus rating on Rocket Lab stock also currently sits at “overweight”.

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