Yesterday, Rocket Lab USA signed a huge contract with Japanese Earth observation company Synspective. Rocket Lab will provide its Electron orbital launch vehicles for 10 new dedicated Synspective launches. The two companies have partnered since 2020, but this is the biggest deal between the two thus far. Investors are excited about this new deal, and Rocket Lab stock is rising. Is now the right time to invest?

Who Is Rocket Lab USA?

Rocket Lab is a full-service space company that was founded in 2006. The Electron launch vehicle, which debuted in 2018, is the second most frequently launched US-built rocket each year. In addition to Synspective, the company has partnerships with a wide variety of both private and public organizations. It has a contract with NASA to support upcoming missions to Mars and to the moon, as well as a contract for the first private launch to Venus.

What The Analysts Are Saying

Analysts see the new contract as a very positive sign for Rocket Lab, since it shows a level of trust from a business that has used the company’s services in the past. Rocket Lab is also opening a new launch complex in Virginia, which should make it even more competitive for future US government contracts. In addition, the company’s satellite components segment is robust and forward-thinking, with a lot of additional room to capitalize on the growing small satellite market.

Rocket Lab isn’t soaring when compared to the fast-growing stocks in the current AI frenzy. But it’s a solid space company that continues to sign new, highly valuable contracts. Short-term investors who are looking for rapid growth may want to hold for now. But those who are looking for a stable investment in the space sector that is likely to grow over time, now could be the right time to buy in.

Neither Lisa Fritscher nor Stocks.News has positions in this company.