The international space race is intensifying and a wave of new space stocks hit the public market in 2021. Unfortunately for investors, the stock prices of all but one of these space stocks are suffering from a major launch failure.
Rocket Lab take off: Monday, the Bank of America analyst Ronald epstein recapped some of the latest developments in the space race and pointed out that of the 10 space stocks that went public in 2021 via an IPO or SPAC merger, only Rocket Lab USA Inc (NASDAQ: RKLB) is still trading above its initial listing price. In fact, the 10 space stocks are on average down 37.3% since their IPO.
Related Link: Space Race Heats Up: Analyst Recaps Latest Developments From SpaceX, Rocket Lab And Others
Momentus Inc (NASDAQ: MNTS) and Spire Global Inc (NYSE: SPIR) are the two worst performing stocks in the group and are each down more than 60%.
“We have also found that much of the enthusiasm surrounding space companies has been driven by retail investors, with institutional interest lacking given the negative nature of most companies’ earnings and cash flow. space, ”said Epstein.
Rocket Lab is the only exception and has even outperformed the Russell 2000 Index, gaining 18% since its IPO in August 2021.
Neutron update: In December, Rocket gave investors its first update on the development of its neutron launcher since its SPAC merger. The Neutron is designed with reuse as a top priority and will feature reusable fairings that won’t separate from the first stage. Instead, the fairings will open to deploy the upper stage, which will be the lightest launcher to ever deploy in space.
Bank of America has a “buy” rating and a target price of $ 20 for RKLB stock.
Benzinga’s point of view: It is still very early to choose one or more long-term winners among the actions exhibited in the space race. Investors should expect more extreme volatility in the space group in the coming years and fully understand the risk that comes with investing in companies so early in the development phase.
See also: Space ETF Adds 8 New Companies, 7 Of Which Have Performed SPAC Mergers: What Investors Need To Know
Photo: Courtesy of fuséelabusa.com