SpaceX IPO Triggers "Alt Stock" Stampede, KeyBanc Contrarian Buy Call on Rocket Lab and Firefly

BlockBeats News, June 15th. SpaceX landed on NASDAQ on June 12th at $135 per share, raising $75 billion, setting a new record for the largest IPO in history. However, after the real protagonist went public, alternative concept stocks that were previously hyped due to their association with SpaceX plummeted one after another—Rocket Lab fell nearly 11% in a single day, Firefly fell 19%, EchoStar fell 14%, and Virgin Galactic plummeted by 34%.

KeyBanc analyst Michael Leshock, in a report released on Sunday, contrarily raised both Rocket Lab and Firefly to overweight, with target prices of $135 (implying a 32% increase from Friday's closing price) and $50 (implying a 57% increase), respectively. He pointed out that the short-term volatility brought about by SpaceX's listing has actually created entry opportunities. The current NASA activities are accelerating at a "pace unseen since the Apollo era," there is a structural shortage in commercial launch supply, and institutional funds' interest in the space race continues to rise.

Currently, among the 10 analysts covering Firefly, 8 have given buy ratings, while among the 22 covering Rocket Lab, 17 recommend buying, aligning with KeyBanc's assessment and the overall Wall Street consensus.