Shares of Rocket Lab (NASDAQ: RKLB) and Firefly Aerospace (NYSE: FLY) advanced on Monday after both space stocks received analyst upgrades following a sharp sector selloff tied to the SpaceX IPO debut.
KeyBanc Capital Markets analyst Michael Leshock upgraded both companies on Sunday, lifting his ratings to Overweight from the previous Sector Weight designation, signaling renewed confidence in the sector’s near-term trajectory.
Leshock set a price target of $135 for Rocket Lab and $50 for Firefly, representing meaningful upside from the levels both stocks reached following Friday’s steep declines.
Rocket Lab clawed back significant ground on Monday, rising 6.7% to $109.25, partially recovering from the 11% drop it suffered in the prior session.
The Friday selloff across space-sector equities was triggered by Elon Musk’s SpaceX making its initial public offering debut, which appeared to rattle investor confidence in competing launch and space infrastructure companies.
Leshock’s characterization of the selloff as “unwarranted” suggests he views the market’s reaction as an overreaction to competitive concerns raised by the SpaceX listing.
The upgrade to Overweight signals that KeyBanc believes both Rocket Lab and Firefly are positioned to perform well relative to broader market benchmarks going forward.
Rocket Lab has steadily built its profile as a leading small-satellite launch provider, while Firefly has expanded its footprint in both commercial and government launch markets, giving both companies distinct competitive positioning.
The SpaceX IPO has injected fresh volatility into the broader space sector, with investors reassessing valuations and competitive dynamics across a range of publicly traded space companies.
Monday’s rebound in both stocks suggests that at least some investors agreed with Leshock’s assessment, moving quickly to buy back into names they viewed as oversold following the prior session’s sharp declines.
The space sector has attracted significant investor attention in recent years as launch cadences increase and both government and commercial demand for satellite deployment and space infrastructure continues to grow.
With KeyBanc now firmly in the bull camp on both names, the upgrades could attract further institutional interest in Rocket Lab and Firefly as analysts continue to weigh the long-term implications of the SpaceX public market debut.
