Rocket Lab Is Down 57% From Its Peak While Analysts See 49% Upside. Who Has It Right?

Rocket Lab stock has fallen 57% from its all-time high of $151, but analysts maintain an average price target of $111.31, suggesting 49% upside potential. The company is experiencing strong growth with record Q1 2026 launch contracts (31), 64% revenue acceleration to $200 million, and a $2.2 billion backlog. Recent major U.S. Space Force contracts worth $663 million further support the bullish outlook. However, the company remains unprofitable with a $45 million net loss in Q1 and trades at a premium P/S ratio of 53, making it a volatile investment suitable only for risk-tolerant investors.