Rocket Lab jumps after KeyBanc upgrade revives space stocks

Rocket Lab shares rose more than 6% on Monday after KeyBanc Capital Markets upgraded the stock to Overweight and set a $135 price target. KeyBanc upgraded Firefly Aerospace to Overweight with a $50 target. Rocket Lab shares traded near $110.60, recovering part of an 11% decline from the prior session. Firefly gained over 6% after a roughly 19% drop on Friday. SpaceX extended gains after beginning trading on the Nasdaq.

KeyBanc analyst Michael Leshok attributed the sector selloff to rebalancing around SpaceX’s public listing rather than worsening company fundamentals. Leshok wrote, “Last Friday’s record-setting SpaceX IPO sent ripple effects across our coverage of space-centric equities, with the sector selling off sharply on IPO day and over the weeks leading up to it. We think this is unwarranted and largely systematic in nature, as funds make room for the space behemoth.”

Fundstrat economic strategist Hardika Singh noted a gap between SpaceX’s market performance and other public space companies, saying some investors sold winners to raise cash for the IPO. “It’s been a great June for space investors, but that was felt only if you held shares of SpaceX and SpaceX only,” Singh observed.

KeyBanc described Rocket Lab as the second-largest commercial launch provider after SpaceX, citing about 90 successful Electron missions. The firm pointed to progress on the Neutron rocket program, saying a January testing anomaly has been resolved and a first launch is scheduled later this year.

Rocket Lab combines launch services with satellite design and manufacturing. The company reported first-quarter revenue of $200.35 million, above analysts’ $189.65 million forecast and up 63.4% year over year. Adjusted earnings per share were negative $0.07, in line with expectations.

Rocket Lab is scheduled to join the Nasdaq-100 on June 22. Stifel raised its price target on Rocket Lab to $132 from $110 and kept a Buy rating. Other space-related stocks that fell around SpaceX’s listing, including AST SpaceMobile, Intuitive Machines, Voyager Technologies and Redwire, recovered some ground on Monday. Analysts noted the near-term volatility reflected portfolio shifts tied to SpaceX’s public listing rather than immediate operational issues at most firms.