Aerospace stocks like Rocket Lab (RKLB) and Planet Labs (PL) moved higher on Wednesday following reports that SpaceX has confidentially filed for an initial public offering. Impressively, Elon Musk’s space company is looking for a valuation above $1.75 trillion, which would make it one of the largest IPOs ever. As a result, the news led to new excitement for space-related stocks, with many investors viewing it as a sign that the industry could be entering its next phase of growth.
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Interestingly, this type of optimism is common when a major IPO is announced, as investors often see it as a positive signal for the entire industry. On top of that, the timing lines up with a NASA mission that involves sending astronauts on a 10-day trip around the moon, which adds even more attention to the space sector.
Overall, interest in space stocks has been growing due to several long-term trends, including falling launch costs, growing satellite networks, and increasing demand for space-based data infrastructure. In addition, SpaceX’s potential IPO could attract strong interest from retail investors, especially since reports suggest that up to 30% of shares may be offered to individuals.
Which Space Stock Is the Better Buy?
Turning to Wall Street, out of the two stocks mentioned above, analysts think that RKLB stock has more room to run than PL. In fact, RKLB’s average price target of $86.92 per share implies 30% upside versus PL’s 11.8%.
