Key Takeaways
- New Street Research initiated coverage on 10 space sector companies, assigning Buy recommendations to Rocket Lab, EchoStar, Viasat, and Space42.
- SpaceX is preparing for a mid-2025 public offering that could assign the company a valuation reaching $2 trillion.
- The firm’s Starship launch system has the potential to slash orbital delivery costs by 90% versus its Falcon 9 platform.
- Rocket Lab shares have surged 415% in the trailing 12-month period, with 80% of analysts maintaining Buy recommendations.
- Morgan Stanley projects the space sector could expand to a $1 trillion market by 2040.
New Street Research has rolled out coverage on a collection of 10 space industry equities, highlighting four companies as preferred investment opportunities. This initiative arrives as investor focus intensifies on the commercial space sector, particularly with SpaceX’s approaching public market debut.
SpaceX has set its sights on a middle-of-the-year listing that could generate up to $75 billion in capital. Market observers anticipate the company’s valuation could soar to $2 trillion, positioning it among the most significant public offerings ever recorded. New Street has indicated plans to publish coverage on SpaceX prior to its market entry.
The investment research house characterizes space as “the next frontier,” highlighting its capability to unlock trillions in economic value throughout the coming twenty years. According to their analysis, orbital infrastructure stands poised to transform multiple sectors, spanning telecommunications, national security, and computing infrastructure for artificial intelligence.
Alphabet and SpaceX have both publicly discussed ambitions to deploy AI computing facilities in orbital environments. Military and defense-oriented space initiatives are similarly projected to expand substantially in coming years.
Plummeting launch expenses represent a critical catalyst powering industry expansion. SpaceX’s Falcon 9 platform slashed the cost of orbital access by over 95% relative to the retired Space Shuttle program. The company’s next-generation Starship vehicle could deliver an additional 90% cost reduction compared to Falcon 9 operations.
Wall Street’s Preferred Space Investments
New Street’s quartet of Buy-rated equities includes Rocket Lab, Viasat, EchoStar, and United Arab Emirates-based Space42.
Rocket Lab is positioned as the sole Western competitor to SpaceX in commercial launch services. The company’s shares have rocketed 415% higher across the previous year. Consensus analyst price objectives hover around $105, though New Street establishes its target at $150. Wednesday’s closing price registered at $124.15.
Approximately 80% of equity analysts tracking Rocket Lab maintain Buy ratings. Financial projections indicate the company should achieve profitability by 2028.
Viasat and Space42 earn recognition for their spectrum portfolio holdings — the radio frequencies essential for wireless communication and data transmission. EchoStar maintains an ownership position in SpaceX while also controlling valuable spectrum assets.
Satellite communications providers AST SpaceMobile, SES, and Iridium were assigned neutral Hold ratings. Eutelsat, Planet Labs, and Telesat received Sell designations.
Industry Outlook and Context
Morgan Stanley forecasts the comprehensive space economy could achieve $1 trillion in total value by 2040. However, market watchers emphasize the sector presents substantial risks — operations demand heavy capital investment, maintain significant dependence on government procurement, and involve sophisticated technological challenges.
Lockheed Martin stands among the industry’s dominant participants. Space-related operations generate over 15% of the defense contractor’s total revenue, with additional involvement in hypersonic weapon systems and satellite production through a partnership with Boeing.
L3Harris broadened its space capabilities via its 2023 purchase of Aerojet Rocketdyne, which at the time represented one of only two domestic manufacturers of large-scale rocket propulsion systems.
AST SpaceMobile is developing technology to enable standard cellular devices to communicate directly with orbital satellites. While the company has secured partnerships with wireless carriers, it confronts substantial financial requirements to complete its planned satellite constellation.
Rocket Lab currently trades at 111 times anticipated revenue over the upcoming 12 months. New Street’s $150 price objective incorporates assumptions including 30 times projected operating earnings for 2030.
EchoStar concluded Wednesday’s session at $133.23, compared against New Street’s $161 target. Viasat finished at $70.58, with the firm setting a $100 price objective.
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