Rocket Lab Has Corrected Nearly 50%. Is It Still Too Expensive?

Summary

Rocket Lab Today$69.75 +0.63 (+0.91%) As of 07/22/2026 04:00 PM Eastern52-Week Range$37.57▼$151.00Price Target$110.18 Rocket Lab NASDAQ: RKLB has been one of the most punished names in the market over the past two months. After peaking near $151 in May, the stock collapsed toward the mid-$60s, a drawdown of more than 50% from its 52-week high, wiping out the entire year's gains and then some.Get Rocket Lab alerts:Sign Up For a company that spent the first half of 2026 as a market darling and leader in the space sector, the reversal has been brutal. And yet, one uncomfortable question keeps surfacing even after a decline this steep: is Rocket Lab still too expensive? Piper Sandler Says the Valuation Is the ProblemThe most pointed version of that concern came from Piper Sandler. On July 15, Piper Sandler initiated coverage on Rocket Lab with a Neutral rating and an $83 price target, and the reasoning was explicit. Even after a near-50% sell off from its highs, the firm argued, the stock remains fairly expensive relative to the complex profile of vertically integrated space companies. The call sent shares down more than 11% in a single session and gave voice to what a lot of investors may have been quietly thinking. Rocket Lab remains one of the most compelling long-term stories in the space sector, but a great business does not automatically make a great stock at any price. Rocket Lab Corporation (RKLB) Price Chart for Thursday, July, 23, 2026 The numbers may help explain some of the caution. Rocket Lab trades at roughly 66 times trailing sales, an extraordinary multiple for any company, let alone one that is not yet consistently profitable. The company generated $601.8 million in trailing revenue in fiscal year 2025, but posted a net loss of $198 million, with net margins of negative 27%. For a stock to command a valuation like that, the market has to price in years of flawless execution and enormous future growth. And when sentiment shifts, as it has across the enti...