Provided continuedAI disruption, indiscriminate software stock selling, andcredit market risksdo not trigger a broader risk-off market event in the coming weeks or months, a June SpaceX IPO could become the bedrock for the grand reopening of the IPO market. The second-order effects of a SpaceX IPO would be improved sentiment toward AI companies going public and potentially a serious investor appetite for the low-Earth-orbit space industry.
Continuing our ever-evolving "how to profit" space theme, a newly listed company on U.S. exchanges isYork Space Systems.
YSS is a U.S. government-focused Space Prime thatbuilds standardized satellite buses(spacecraft platforms) at scale, integrates customer payloads, and supports the rest of the mission, launch coordination, the ground segment, and in-orbit operations.
"Its vertically integrated design and manufacturing process means its SVs can be produced at 50% of the cost and 20% faster than defense primes," Goldman analyst Anthony Valentini wrote in a note on Monday.
Valentini told clients her markets team has begun to"initiate coverage of YSS at Neutral with a $29 price target."
YSS' ability to build spacecraft and offer aligned services at not just half the cost but in a quicker timeframe checks all the boxes that the U.S. military is searching for these days,especially with the DOGE unit at the Department of War resetting the procurement program away from big, bloated legacy primes to startups.
Valentini gives three reasons why her markets team favors YSS:
Growth: alignment to the growing space economy and shifting DoW purchasing preferences could lead to fast growth;
Business model: the business is capital light and structured to control cost, enabling lowest price solutions to customers;
Potential sticky high margin revenue: potential for recurring high margin software revenue as the installed fleet increases.
Source: ZeroHedge News
