These stocks are in prime position as Trump eyes space exploration, says analyst

MW These stocks are in prime position as Trump eyes space exploration, says analyst

By James Rogers

President Trump vowed to 'pursue our manifest destiny into the stars' in his inauguration speech

A slew of space stocks have skyrocketed following the inauguration of President Donald Trump, boosted by his vow to champion American space exploration during his administration.

Set against this backdrop, space-launch company Rocket Lab USA Inc. $(RKLB)$ and space-exploration company Intuitive Machines Inc. (LUNR) are particularly well positioned, according to Cantor Fitzgerald analyst Andres Sheppard.

"Trump stated that Americans will 'pursue our manifest destiny into the stars, launching American astronauts to plant the Stars and Stripes on the planet Mars,'" he wrote in a note released Tuesday. "In doing so, Trump expressed his support for the Space Economy, and we continue to expect future growth in the industry, fueled by additional investment into space exploration."

Related: Space stocks skyrocket after Trump vows to 'pursue our manifest destiny into the stars'

"As such, we continue to believe Intuitive Machines and Rocket Lab are amongst the best positioned in the industry," Sheppard added. "In 2024, shares of LUNR and RKLB returned 611% and 361%, respectively, and for 2025, we expect the Space industry to continue to outperform."

Lifted by Trump's comments during his inauguration speech, shares of Rocket Lab ended Tuesday's session up 30.3% and Intuitive Machines shares climbed 23.9%.

Rocket Lab, based in Long Beach, Calif., has highlighted strong demand for its Electron rocket and is planning the first test launch of its new Neutron rocket this year, which will be followed by three commercial, or paid, launches in 2026 and five in 2027. Rocket Lab also hit a milestone in November when it completed successful launches in two different hemispheres in less than 24 hours.

Related: These are the space stocks to watch in 2025

Of 14 analysts surveyed by FactSet, eight have a buy rating and six have a hold rating for Rocket Lab.

"The Neutron launch vehicle is currently under development and will have a payload capacity of up to 13,000 kg/per expendable launch for missions into orbit," wrote Cantor Fitzgerald's Sheppard. "The Neutron launch vehicle is being tailored for commercial and U.S. government constellation launches and will ultimately be capable of human space flight." Cantor Fitzgerald has an overweight - or buy - rating for Rocket Lab.

Intuitive Machines made history last year when its Odysseus lander became the first commercial spacecraft to successfully land on the moon's surface. The company plans to send its second mission, IM-2, to the lunar surface in early 2025.

Related: SpaceX's Starship blew up. Elon Musk says it's 'barely a bump in the road.'

"This mission will aim to validate water-hunting infrastructure on the moon (such as a prospecting drill to search for water ice) and mobility services (the company's Micro Nova Hopper is designed to hop across the lunar surface)," Sheppard wrote.

The analyst also pointed out Intuitive Machines' planned IM-3 mission, which has a mission window through early 2026, and its IM-4 mission, which is expected in 2027.

"Overall, we remain Bullish on LUNR, and we continue to believe it is well positioned to capitalize on the growing space economy, win additional contracts, and conduct additional missions to the moon," wrote Sheppard. Cantor Fitzgerald has an overweight - or buy - rating for Intuitive Machines.

Related: Jeff Bezos's Blue Origin has entered the orbital space race. What it means for SpaceX and the space industry.

All six analysts surveyed by FactSet have a buy rating or equivalent for Intuitive Machines. Overall, Cantor Fitzgerald expects to see an acceleration in space industry launches for 2025.

"For 2025, we expect additional launches to the moon and into orbit," wrote Sheppard.

The analyst highlighted private space company Firefly Aerospace's recent launch to the moon atop a SpaceX Falcon 9 rocket. The Blue Ghost Mission 1 is expected to reach the lunar surface with its payload of 10 science and technology instruments, on March 2.

-James Rogers

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

January 22, 2025 08:33 ET (13:33 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.