Rocket Lab tests Neutron fairing as stock jumps over 6%

Rocket Lab shares jumped over 6% on September 17 to close at $67.82, bringing their weekly gain to nearly 8% and marking their best weekly run in over a month. Over the past year, the stock is up 41%.

The rally followed progress on the medium-lift reusable Neutron rocket in Virginia. Rocket Lab completed pre-flight testing of its Hungry Hippo fairing at its Assembly and Integration Complex. The company also installed a 10-meter test stand for Neutron's second stage at Launch Complex 3.

Unlike conventional fairings, the Hungry Hippo structure remains attached to the reusable first stage, opening to deploy payloads before closing for return. Rocket Lab plans to test the thrust module on the launch mount before moving to integrated pad tests, a wet dress rehearsal, and a first-stage static fire. By August, the company had completed over 400 Archimedes engine hot fires and produced the full engine set for the maiden flight.

CFO Adam Spice previously outlined a targeted launch price of $50 million to $55 million per flight, aiming for 10 to 20 flights per booster with a 13-metric-ton capacity to low Earth orbit. Neutron has booked five missions through 2029 for a confidential customer, a dedicated launch for Kepler no earlier than 2028, and flights under a $397 million Space Force contract.

Execution remains a challenge after the debut slipped from 2024 to 2026, including a first-stage tank rupture in January. Neutron is projected to reach the launch pad in the fourth quarter. CEO Peter Beck warned in August that the window for an end-of-year launch is narrowing, leaving a 2026 liftoff uncertain.