Rocket Lab (RKLB) and EchoStar Lead Analysts’ 2026 Space Stock Picks

Key Takeaways

• New Street Research initiated coverage on 10 space industry stocks, assigning Buy recommendations to Rocket Lab, Viasat, EchoStar, and Space42.
• SpaceX aims to go public mid-2026 at a potential $2 trillion valuation.
• The Starship launch system could slash orbital delivery costs by 90% versus SpaceX’s own Falcon 9.
• Rocket Lab shares have surged 415% in the past year, with 80% of analysts rating it a Buy.
• Morgan Stanley projects the space sector could hit $1 trillion in value by 2040.

New Street Research has initiated coverage across 10 companies operating in the space sector, issuing Buy recommendations for four of them. The timing coincides with heightened market interest as SpaceX prepares for its highly anticipated public debut.

SpaceX is eyeing a mid-2026 initial public offering that could generate up to $75 billion in proceeds. At a potential valuation approaching $2 trillion, the listing would rank among history’s largest market debuts. New Street indicated it will initiate SpaceX coverage before the company goes public.

The firm characterizes space as “the next frontier,” projecting it could unlock trillions in economic value throughout the coming decades. New Street believes orbital systems will reshape sectors spanning telecommunications, national security, and artificial intelligence infrastructure.

Alphabet and SpaceX have both signaled plans to deploy AI computing facilities in space. Military and defense-focused space applications are projected to expand significantly in coming years.

Falling launch economics represent a critical catalyst for industry expansion. SpaceX’s Falcon 9 decreased space access costs by over 95% compared to the Space Shuttle era. The company’s next-generation Starship platform could deliver an additional 90% cost reduction versus Falcon 9.

New Street’s Preferred Space Investments

The four stocks receiving Buy ratings from New Street are Rocket Lab, Viasat, EchoStar, and Space42, headquartered in the UAE.

Rocket Lab stands out as the sole Western competitor to SpaceX in commercial launch services. The stock has rocketed 415% higher over the trailing 12 months. Analyst consensus targets approximately $105 per share, while New Street establishes its price objective at $150. Shares concluded Wednesday’s session at $124.15.

Rocket Lab USA, Inc., RKLB

Roughly 80% of Wall Street analysts tracking Rocket Lab maintain Buy recommendations. The company is projected to achieve profitability by 2028.

Viasat and Space42 earned recognition for their spectrum portfolios — the radio frequencies essential for transmitting communications and data. EchoStar maintains an ownership position in SpaceX while also controlling valuable spectrum licenses.

Satellite communications providers AST SpaceMobile, SES, and Iridium were assigned Hold ratings. Eutelsat, Planet Labs, and Telesat received Sell recommendations.

Industry Outlook and Considerations

Morgan Stanley forecasts the global space economy could reach $1 trillion by 2040. However, analysts emphasize significant risks accompany the sector — substantial capital requirements, heavy dependence on government contracts, and intricate technological challenges.

Lockheed Martin stands as one of the industry’s dominant participants. Space-related operations contribute over 15% of company revenue, with additional involvement in hypersonic weapons and satellite production through a joint venture with Boeing.

L3Harris broadened its space capabilities via the 2023 purchase of Aerojet Rocketdyne, which at the time was one of just two domestic manufacturers of large rocket propulsion systems.

AST SpaceMobile is developing technology to enable standard smartphones to communicate directly with satellites. While the company has secured partnerships with wireless carriers, it faces substantial expenses to deploy its complete satellite constellation.

Rocket Lab currently trades at 111 times forward 12-month sales. New Street’s $150 price target incorporates assumptions including 30 times anticipated 2030 operating earnings.

EchoStar shares finished Wednesday at $133.23, compared to New Street’s $161 target. Viasat closed at $70.58, versus the firm’s $100 price objective.

The post Rocket Lab (RKLB) and EchoStar Lead Analysts’ 2026 Space Stock Picks appeared first on Blockonomi.