RocketLab (RKLB) Stock Surges 15%: How Space Stocks Benefit From Upcoming SpaceX IPO

• RocketLab (RKLB) stock surged 15% during Monday’s trading session, and is now up over 60% YTD.
• The upcoming IPO for SpaceX (SPAX.PVT) is helping space stocks like RKLB surge
• RocketLab’s latest earnings report saw the company post a 63.5% revenue increase year-over-year and raised guidance for Q2 revenue.

RocketLab (RKLB) stock boomed as much as 15% during Monday’s trading session, riding the wave of an overall climb amongst space stocks. The upcoming IPO for SpaceX (SPAX.PVT) is seen as a potentially explosive catalyst for tech stocks, and space stocks specifically. Names such as Rocket Lab, AST SpaceMobile (ASTS), Planet Labs, and BlackSky have emerged as key investor bets on the growing commercial space economy, spanning satellite communications, launch services and Earth-imaging technology.

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How SpaceX’s IPO is impacting RKLB: Can the two Space Stocks Work Together Post-IPO?

RocketLab’s stock is presently at all-time highs, after eclipsing the $100 mark for the first time last week. The stock has advanced four of the last six weeks, with three of the weeks producing double digit return. Its biggest daily game came Friday after its latest earnings were released, with RKLB climbing over 30% to end last week. In the last five days, its stock is now up over 45%. Additionally, The company secured significant contracts, including a $190 million defense project, enhancing its market position and growth potential.

With reports of SpaceX going public soon, investors are heavily in line to explore related assets. SpaceX’s firm’s pre-IPO valuations skyrocketing at a record pace. Space stocks like RocketLab RKLB, despite competing with SpaceX, reap a similar value as cryptocurrencies compared to king coin Bitcoin, as when the market leader does well, others will follow. Hence, with the IPO coming soon and SpaceX performing well, RocketLab gets a direct positive effect.

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Analysts across Wall Street are hiking their forecasts for RocketLab, becoming more bullish on space stocks ahead of potentially the biggest IPO of all time. TD Cowen recently maintained a Buy rating on the shares and raised their price target from $90 to a joint Street-high of $120, signaling there’s room for further gains of 14% in the months ahead. This mark has already been breached and is close to becoming a stable price for the stock throughout May. Not to mention, its latest earnings report saw the company post a 63.5% revenue increase year-over-year and raised guidance for Q2 revenue.

Once SpaceX launches its groundbreaking IPO, RocketLab may see its biggest climb yet, even beyond the current $120 forecast.

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