Virgin Galactic (SPCE) and Maxar (MAXR) are two space stocks that Wall Street is betting will increase by more than 50% in the near future. The space sector is rapidly gaining interest, and its advancements are due to substantial research and development investments.
The Global space economy was worth $447 billion in 2020, 55% more than it was ten years ago, this is according to the 2021 Quarter two Space Report. Technological innovations and private investment sources drive the increasing growth.
Furthermore, commercial travel is progressing the quickest and is the primary driver of future growth. The interest in commercial space grew by 6.6% to almost $357 billion in 2020. This is nearly 80% of the total space economy, despite the pandemic’s impact.
Government funding and private investments are backing the growth of the space economy.
Why is Wall Street eyeing SPCE and MAXR?
SPCE’s primary business is human spaceflight development for private individuals and researchers in the USA. They also manufacture air and space vehicles.
The Federal Aviation Administration renewed SPCE’s space transport operator license. This will permit them to fly individuals to space. The updated licencing will enable the company to arise as an industry leader.
SPCE achieved a revenue of 139.9% year on year to $0.57 million for the last six months. Gross profit grew by 681.5% to $0.51 million.
On the other hand, MAXR provides earth intelligence and space infrastructure solutions in the USA, Asia, South America, Europe, the Middle East, Australia, Canada, and internationally. They also provide services to the US government and other international government agencies.
Their revenue increased by 7.7% to $473 million. The increase in revenue of their Space infrastructure business mainly drove this increase. Operating income was up $56milion, 40% up from the previous period last year.
Four out of the seven Wall Street analysts rated MAXR a Buy and three a Hold. The price target is set to $43.29, which is 58% up from the last closing price of $27.34.