Rocket Lab Stock Jumps 17% on $8 Billion Iridium Deal Announcement, Analyst Says Deal Differs From Starlink

According to Craig-Hallum analyst, Rocket Lab (RKLB) stock jumped 17% on Monday after the company announced an $8 billion acquisition of Iridium Communications (IRDM). The analyst called the deal "transformational" and rejected concerns that the acquisition positions Rocket Lab as a competitor to SpaceX's Starlink, calling that interpretation the "wrong take."

Iridium's L-band spectrum is designed for low-bandwidth, high-reliability use cases such as tactical communications, positioning/navigation/timing services, and Internet-of-Things, which differ from Starlink's consumer broadband focus. Craig-Hallum raised its price target on RKLB to $120 from $98 and maintained a Buy rating. Iridium shares jumped nearly 25% on the same day.