Rocket Lab (RKLB) received a Buy rating from Berenberg as they start coverage on the space industry. Berenberg predicts the global space economy will grow from over $500 billion in 2025 to above $1 trillion by 2030, fueled by lower launch costs and increased defense and government spending.
Rocket Lab is notable for its active Electron rocket, positioning it as a credible alternative to SpaceX. The firm’s potential lies in Neutron, a larger rocket meant for higher-value missions, although it hasn’t yet reached orbit, presenting development risks. Additionally, competition from SpaceX may impact pricing.
While Berenberg’s Buy rating may boost investor confidence, Rocket Lab’s long-term growth largely hinges on Neutron’s successful development and launches.
