Rocket Lab USA, Inc. (RKLB) shares are soaring 5.09% in pre-market trading on Wednesday, following the company's announcement of a strategic acquisition and multiple analyst upgrades. The space technology company's stock price surge reflects investor optimism about its expansion plans and growth potential in the satellite payload market.

The primary catalyst for the stock's upward movement is Rocket Lab's agreement to acquire Geost, a US-based developer of electro-optical and infrared payloads for national security satellites, for $275 million. This acquisition is set to bolster Rocket Lab's presence in the satellite payload market, diversifying its product offerings and potentially opening up new revenue streams in the defense sector.

Adding fuel to the rally, several analysts have raised their price targets for Rocket Lab USA. Stifel increased its target price to $34 from $29, while Roth Capital analyst Suji Desilva raised the firm's price target to $35 from $25, maintaining a Buy rating on the shares. These upgrades reflect growing confidence in Rocket Lab's business strategy and future prospects.

The stock's significant pre-market gain also comes amid a broader positive sentiment in the space technology sector, which has been benefiting from increased commercial interest and government support. As Rocket Lab continues to expand its capabilities and market reach, investors appear to be betting on its potential to capture a larger share of the growing space economy.