Key Takeaways
- A Wall Street firm initiated coverage on ten space industry stocks, assigning Buy recommendations to Rocket Lab, EchoStar, Viasat, and Space42.
- SpaceX’s anticipated mid-2025 public offering could achieve a valuation approaching $2 trillion.
- The upcoming Starship launch vehicle promises to slash orbital access costs by 90% versus SpaceX’s existing Falcon 9 system.
- Over the trailing twelve months, Rocket Lab shares have surged 415%, with 80% of analysts recommending the stock.
- Industry forecasts suggest the space economy could expand to $1 trillion within the next 15 years.
New Street Research recently unveiled its inaugural analysis of ten publicly traded space companies, identifying four as attractive investment opportunities. The timing coincides with mounting enthusiasm surrounding SpaceX’s forthcoming market debut.
Elon Musk’s aerospace venture aims to complete its initial public offering around the middle of this year, potentially securing approximately $75 billion in capital. With a possible valuation reaching $2 trillion, this would rank among the most significant stock market launches ever recorded. New Street has indicated plans to provide research coverage on SpaceX prior to its public listing.
According to the investment firm, the space sector represents “the next frontier” for economic expansion, with opportunities to unlock trillions in value throughout the coming decades. The analysis highlights how space-based technologies stand poised to revolutionize sectors spanning telecommunications, national security, and computing infrastructure for artificial intelligence applications.
Alphabet alongside SpaceX have publicly discussed concepts for deploying AI computing facilities in orbital environments. Military and defense-oriented space capabilities are similarly projected to experience substantial expansion.
Declining launch expenses serve as a primary catalyst fueling industry advancement. SpaceX’s Falcon 9 system reduced space access costs by over 95% relative to NASA’s retired Space Shuttle program. The company’s next-generation Starship platform could deliver an additional 90% cost reduction compared to Falcon 9 operations.
Analyst-Recommended Space Investments
The four companies receiving Buy recommendations from New Street include Rocket Lab, EchoStar, Viasat, and the United Arab Emirates-based Space42.
Rocket Lab stands out as the sole Western competitor to SpaceX in commercial launch services. The company’s shares have appreciated 415% during the past year. While consensus analyst projections suggest a price target near $105, New Street establishes its target at $150. Wednesday’s closing price reached $124.15.
Approximately 80% of Wall Street professionals tracking Rocket Lab maintain Buy ratings on the shares. Financial projections indicate the company should achieve profitability by 2028.
Both Viasat and Space42 earned positive ratings based on their spectrum portfolio holdings — the regulated wireless frequencies essential for communications and data transmission. EchoStar’s investment stake in SpaceX complements its own spectrum assets.
The research placed Hold ratings on satellite operators including AST SpaceMobile, SES, and Iridium. Meanwhile, Eutelsat, Planet Labs, and Telesat received Sell designations.
Industry Outlook and Context
Morgan Stanley projects the global space economy could reach $1 trillion by 2040. However, industry observers emphasize significant challenges — the sector demands substantial capital investment, maintains heavy dependence on government procurement, and involves sophisticated technical execution.
Lockheed Martin continues as a dominant force within the industry. Space-related activities generate over 15% of the company’s total revenue, including involvement in hypersonic weapon systems and satellite production through a partnership with Boeing.
L3Harris strengthened its space capabilities via the 2023 purchase of Aerojet Rocketdyne, which at the time represented one of just two American manufacturers of large-scale rocket propulsion systems.
AST SpaceMobile pursues technology enabling conventional mobile devices to communicate directly with satellites. While securing partnerships with cellular carriers, the company confronts substantial expenses to deploy its complete satellite network.
Rocket Lab currently trades at 111 times projected revenue for the upcoming twelve months. New Street’s $150 valuation target incorporates assumptions including 30 times estimated 2030 operating earnings.
EchoStar concluded Wednesday’s session at $133.23, compared with New Street’s $161 target price. Viasat finished at $70.58, versus the firm’s $100 objective.
