Rocket Lab USA's (RKLB) delayed launch of its new, medium-lift class rocket Neutron is a "relatively modest schedule shift," Morgan Stanley said in a note Monday.

The investment bank noted that the company now expects Neutron's first launch to take place in H2, compared with the previous guidance of mid-2025.

"Some investors had been bracing for more significant delays heading into [the most recent] results," Morgan Stanley said. "Encouragingly, the total projected cost to deliver the initial Neutron rocket (minimum viable product), per management, remains within the $250 million to $300 million range."

The Wall Street firm said it expects the company's shares to remain volatile ahead of the launch, but added that the company "is potentially entering a catalyst-rich period later this year."

Morgan Stanley boosted Rocket Lab USA's price target to $20 from $18 and maintained its equalweight rating.

The company's shares were down over 7% in recent Monday trading.

Price: 17.42, Change: -1.38, Percent Change: -7.34