Rocket Lab Stock Rises 2% Overnight as Morgan Stanley Raises Price Target to $105 on $8B Iridium Deal

According to Morgan Stanley, Rocket Lab (RKLB) stock rose over 2% in overnight trading late Wednesday (July 8) after the brokerage reiterated its 'Overweight' rating and raised its price target to $105, implying 26% upside from current levels. Morgan Stanley also lifted its bull-case target to $293 from $185, citing the company's commercial progress and vertical integration potential following its acquisition of Iridium Communications.

Rocket Lab announced last week it will acquire Iridium in a cash-and-stock deal valued at $8 billion, or $54 per share. The deal combines Rocket Lab's launch and satellite manufacturing with Iridium's global communications network, L-band spectrum, and over 500 partners, positioning the company as a 'vertically integrated space platform' with recurring satellite services including Internet of Things connectivity and direct-to-device services.