Who's next after SpaceX (SPCX)?...Wall Street says "buy 6 space stocks"

▲ SpaceX (SPCX), Space Industry/AI Generated Image

As the $2 trillion company SpaceX (SPCX) changes the landscape of the space industry, Wall Street has identified six space stocks, including Rocket Lab (RKLB) and Kratos Defense & Security Solutions (KTOS), as new investment opportunities.

According to Barron's, a US investment media outlet, on July 7 (local time), the space industry is emerging as a full-fledged investment market as SpaceX significantly lowers the cost of space entry with reusable rockets. SpaceX, which successfully landed a rocket booster in 2015, ushered in an era of reusing rockets returning from space.

The decline in launch costs has fostered new businesses such as Earth observation and satellite internet. SpaceX's Starlink has surpassed 10 million customers. Annual revenue amounts to billions of dollars, and profit margins exceed 60%.

Jonathan Siegmann, an analyst at Stifel, stated, “Political policies, military mission objectives, technological innovation, and the lowest space access costs ever have strengthened the entire space ecosystem.” He evaluated that all defense, commercial, and government markets in the space industry are on a positive trend.

Siegmann issued a 'buy' rating for SpaceX with a price target of $190. The recommended stocks also included Rocket Lab, Kratos, Applied Aerospace & Defense, MDA Space, and Spire Global. Rocket Lab's price target is $132.

Barron's reported that SpaceX's large, fully reusable Starship rocket could further reduce the cost of space entry. With launch and space services, hardware, satellite manufacturing, and space data analysis companies becoming Wall Street's investment targets, Barron's assessed that “from Wall Street's perspective, the space invasion has begun.”

[Article Key Summary]

-Stifel issued 'buy' ratings for six space stocks, including SpaceX, Rocket Lab, and Kratos.

-SpaceX's Starlink has surpassed 10 million customers, and its profit margin exceeds 60%.

-SpaceX's price target was set at $190, and Rocket Lab's price target at $132.

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