11:04 AM EST, 11/12/2025 (MT Newswires) -- Rocket Lab ( RKLB ) continues to see robust demand for its Electron rocket, though a modest delay in the first Neutron launch highlights ongoing development risks, Morgan Stanley said Wednesday in a report.

The brokerage said Neutron's first flight is now expected in 2026, pushing out program spending and raising total development costs to about $360 million by year-end 2025, compared with earlier estimates of $250 million to $300 million.

Still, Electron demand remains "strong," with 17 launches booked in the third quarter and about $100 million in sequential backlog growth, according to the report.

Morgan Stanley also noted that Rocket Lab's ( RKLB ) roughly $1 billion in liquidity provides flexibility to advance its long-term space strategy.

The firm maintained its equal-weight rating on the stock and lowered its price target to $67 from $68.

Price: 51.64, Change: +0.40, Percent Change: +0.78