Rocket Lab Sheds 8.2% as Neutron's Maiden Flight Slips to 2027 — ARK Steps In While Analysts Trim Targets

Rocket Lab closed Friday at €45.25, down 8.2%, after the company disclosed a manufacturing setback that pushes the debut of its Neutron rocket into 2027. The stock now trades 66% below its 52-week high, yet the sell-off drew at least one prominent buyer: ARK Investment Management picked up 168,633 shares on Thursday, according to transaction data.

Voids in the fuel dome force a redesign

The trouble traces back to a change in the manufacturing sequence that produced air pockets in the forward fuel domes of the first stage. CEO Peter Beck said inspections caught the defects, and the affected component must be replaced, which in turn triggers additional testing. Rocket Lab had been targeting a fourth-quarter 2026 launch; the rework moves that milestone into the following year.

Building and qualifying complex rocket stages is demanding work, and delays stemming from material checks are hardly unheard of in the industry. Investors nonetheless sold first and asked questions later, because Neutron's commercial rollout is seen as a key driver of future revenue.

Clear Street, KeyBanc and Citizens all lower their marks

Wall Street spent two days recalibrating. Clear Street's Greg Pendy cut his price target to $105 from $129 on Thursday while keeping a Buy rating, arguing the shares still offer substantial upside from current levels. KeyBanc followed on the same day, trimming its target to $100 and pointing to valuation pressure on high-growth space names alongside the revised timeline. Citizens weighed in on Friday, reducing its target to $90 from $130 but maintaining a Market Outperform rating.

The pattern is consistent: none of the three houses questions whether Neutron can fly — they are simply accounting for the delay. The commercial case for the vehicle remains intact, even if the revenue it generates arrives later than hoped.

A test of patience, not a verdict on the program

For holders, the drawdown is uncomfortable. But the core business is proceeding on schedule: while Neutron work is adjusted, Rocket Lab is preparing the next launch of its established Electron rocket for customer HawkEye 360. Identifying a flaw on the ground and fixing it is quality control doing its job — a rushed test flight with faulty hardware could have set the entire program back by years.

The pullback reflects shock over the slipped timeline more than any fundamental deterioration. Investors who can stomach the swings inherent in the space sector may see the correction as a familiar trial on a technically demanding path — and ARK, for one, appears to be treating it that way.