Morgan Stanley Upgrades Space Sector Outlook, Highlights Rocket Lab and MDA Space
Morgan Stanley has shifted its stance on the space sector to "Attractive" for 2026, citing strong performance in 2025 and anticipating further growth. Analyst Kristine Liwag, who holds a five-star rating with a 66% success rate, led the upgrade. Rocket Lab and MDA Space were both upgraded to Overweight, with price targets raised to $105 and $46, respectively. Conversely, Iridium was downgraded to Equal-weight, with its price target slashed to $24.
The bank projects growth drivers for the sector to include increased launch cadences, new product introductions, policy support, and market expansion. Rocket Lab aims to complete its first Neutron launch in early 2026 while ramping up Electron launch frequency. These developments signal a broader institutional confidence in the space industry's trajectory.