Space Sector Soars as Analysts Upgrade 2026 Growth Forecasts

The space technology sector is gaining momentum as analysts adjust their outlooks for 2026. Morgan Stanley has upgraded its rating for the industry to 'Attractive', citing stronger growth prospects. Several key companies, including MDA Space and Rocket Lab, have seen revised stock ratings and price targets in recent assessments.

A wave of upcoming launches and potential market shifts is also shaping expectations for the year ahead.

Morgan Stanley’s latest report highlights a positive shift for the space sector, driven by rising demand and policy support. The firm now rates the industry as 'Attractive' for 2026, pointing to increased rocket activity and favourable U.S. government backing.

MDA Space has received an 'Overweight' rating, with its price target jumping from $32 to $46. Analysts note the company trades below peers, suggesting room for revaluation in the coming year. Meanwhile, Rocket Lab’s outlook has improved significantly, earning an 'Overweight' upgrade and a new $105 target—up from $67. The company’s upcoming milestones, including the first Neutron rocket launch and higher Electron launch rates, have boosted investor confidence.

Not all firms have seen upgrades, however. Iridium’s rating was lowered to 'Equal-weight', with its price target slashed from $37 to $24. The change follows strategic shifts in its business model, which have introduced uncertainty about future performance.

Launch activity is set to accelerate in 2026. Arianespace plans up to eight Ariane 6 missions, including a February commercial flight for Amazon’s Leo satellite network. Isar Aerospace will conduct its second Spectrum rocket launch from Norway in January, while SpaceX continues Starship flight tests. Blue Origin, LandSpace, and Firefly Aerospace also have major missions scheduled, including Firefly’s Blue Ghost Mission 2 to the Moon in late 2026.

Industry speculation is growing around SpaceX, the largest private space company. Reports suggest it may pursue an initial public offering (IPO) in 2026, a move that could further energise the sector.

The space technology sector enters 2026 with stronger analyst ratings and a packed launch schedule. MDA Space and Rocket Lab are positioned for potential gains, while Iridium faces challenges from its strategic changes. With major missions planned and possible market debuts, the year ahead could bring significant shifts for investors and companies alike.