Berenberg launched bullish coverage of three major space sector stocks, pointing to falling launch costs and surging defense budgets as key catalysts for sector growth.
Analyst Michael Filatov initiated coverage of AST SpaceMobile (NASDAQ: ASTS), Rocket Lab (NASDAQ: RKLB), and Planet Labs (NYSE: PL), all with Buy ratings, citing a rapidly expanding investable universe in the space economy.
Filatov argued that lower launch costs helped push the global space economy past $500 billion in 2025, with the market now on track to exceed $1 trillion by 2030.
The analyst also pointed to defense space spending of $74 billion in 2025 and a U.S. Space Force fiscal 2027 budget request that more than doubled from the prior year as significant macro tailwinds.
NASA’s $700 million Blue Origin contract provided additional context for Wall Street’s renewed interest in re-rating space sector stocks heading into the second half of 2026.
AST SpaceMobile received the highest price target among the three companies, with Filatov setting a $92 objective and describing the company as “the only company to have demonstrated true cellular broadband from space to unmodified smartphones.”
The company’s broadband platform is backed by more than 60 mobile network operator partnerships, covering roughly 3 billion subscribers globally, giving it a substantial commercial footprint that competitors have yet to replicate.
ASTS shares surged 11% to $62.36 in Wednesday morning trading, marking the stock’s sharpest single-session gain in weeks and reflecting strong investor appetite following the initiation.
Planet Labs was initiated with a $25 price target, with Filatov describing it as “the only company imaging the entire Earth daily,” supported by revenue growth accelerating from roughly 10% to 42% over five quarters and a backlog up 72% year-over-year to approximately $906 million.
PL shares climbed 5% to $20.14 on the same session, though both ASTS and PL remain behind the broader sector year to date, suggesting the buying activity reflects a bounce in laggards rather than a wider sector rotation.
Rocket Lab received a price target of $83, implying approximately 36% upside potential from recent levels, with Filatov naming RKLB “the only end-to-end public pure-play in space.”
Meanwhile, the Procure Space ETF (NYSEARCA: UFO) rose just 0.2% to $42.83, a muted gain that underscored how the session’s momentum was driven by initiation activity rather than broad sector enthusiasm.
The divergence between individual stock gains and the ETF’s flat performance signals that institutional money is moving selectively into specific names rather than rotating broadly into space-related assets.
