SpaceX's initial public offering, which began trading on Nasdaq and saw a 19% increase, has been described as the largest IPO in history, valuing the company at $2.1 trillion. Despite this, the iShares U.S. Aerospace & Defense ETF fell about 1% on the same day, with Firefly Aerospace and Rocket Lab experiencing declines of 19% and nearly 11%, respectively.
KeyBanc analyst Michael Leshock noted that the volatility following the SpaceX IPO presents compelling investment opportunities in the space sector, particularly for well-capitalized companies aligned with national security and NASA's priorities. The firm set a price target of $50 for Firefly, indicating a potential 57% upside, and a $135 target for Rocket Lab, suggesting a 32% increase.
The broader market sentiment appears to support this view, with a majority of analysts rating both stocks as buy or strong buy. Despite recent declines, both companies have shown strong performance over the past six months, with Firefly up 57% since going public last August and Rocket Lab up 85% since late 2020.
The accelerating activity from NASA and the constrained launch supply amid growing demand for satellite services further bolster the case for investment in these aerospace stocks