Berenberg Initiates Coverage on Space Sector, Buys 4 Stocks

Kratos Defense & Security Solutions announced on Monday that it won multiple contracts worth more than $100 million to develop space intelligence and cyber capabilities for joint military operations. The work will support RF signal collection, intelligence gathering, electronic warfare, and offensive cyber operations. The contracts will leverage the company's KnownSpace network of more than 190 RF sensors across more than 20 locations, along with its software and analytics capabilities. Following the announcement, KTOS stock traded about 1.58% higher at roughly $43.75 in pre-market trading.

Teledyne Imaging Sensors announced it has delivered more than 1.3 billion infrared detector pixels in support of the U.S. Space Force and Space Development Agency's Proliferated Warfighter Space Architecture, and has been selected to provide infrared focal plane technology for both Accelerated Missile Defense Tranche 3 awards. The pixel deliveries support SDA Tracking Layer programs for missile warning and missile tracking missions. To date, Teledyne has delivered more than 170 infrared focal planes for the SDA Tracking Layer and is under contract to provide more than 115 additional focal planes. The AMDT3 awards, announced by SDA in July 2026, will add more than 30 additional missile warning, missile tracking, and missile defense satellites to the Tracking Layer in direct support of the Golden Dome for America initiative. Teledyne has also advanced its large-format focal plane arrays to formats as large as 6K × 6K and 8K × 8K pixels.

Viasat Inc., through its subsidiary Inmarsat Government, Inc., was awarded the U.S. Space Force's MECS2 contract in September 2026, securing an initial US$42 million task order under a seven-year Indefinite Delivery/Indefinite Quantity agreement with a ceiling of up to US$307 million to provide fully managed global SATCOM services for the U.S. Marine Corps. The award deepens Viasat's role in secure, multi-orbit government communications and highlights the importance of its ViaSat-3-enabled Ka-band network and 24x7 managed services capabilities. The company's narrative projects $5.5 billion revenue and $626.3 million earnings by 2029, with forecasts yielding a $103.94 fair value, a 44% upside to its current price. Some of the lowest ranked analysts were far more cautious, assuming only about 3.9 percent annual revenue growth and continued losses. The MECS2 award looks incrementally positive for the investment thesis, reinforcing defense demand and multi-orbit capabilities, but it does not by itself resolve near term pressure from high ViaSat-3 and Inmarsat capex or the risk that broadband subscriber declines keep weighing on revenue quality.

L3Harris Technologies has secured an undefinitized contract from Lockheed Martin worth more than US$6b over seven years to expand propulsion output for the THAAD missile defense system. The arrangement follows a prior framework with the Department of War to quadruple THAAD propulsion production and includes both a new Solid Rocket Boost Motor facility and added Liquid Divert and Attitude Control capacity. The contract lands as L3Harris shares have fallen about 9% over the past month and 22% year to date on a share price basis, though the 3 year total shareholder return is up roughly 53%. The company closed at $236.60, while the most followed narrative estimates fair value at about $342 per share using an 8.4% discount rate, framing the win as one more contract feeding into a broader backlog and earnings story. The story could break if U.S. budget pressure trims space spending or if prime contractor delays slow conversion of the reported US$42b backlog.

ICEYE and Nokia announced a partnership to develop secure, sovereign and high-performance broadband low Earth orbit satellite communications systems for governments, supporting missions from defense and border security to emergency services and disaster response. Built on trusted European technology, the jointly developed systems will give nations ownership and control of the satellites, ground segment and terminals, with the first communications satellites expected to be launched in 2028. The systems will deliver targeted, high-throughput, low-latency connectivity over priority mission areas, designed to complement military and commercial networks rather than replace them. The partnership combines ICEYE's track record delivering sovereign satellite missions with Nokia's experience in secure networking technologies and growing defense portfolio, integrating satellites, ground infrastructure and ruggedized end-user terminals. ICEYE CEO and Co-founder Rafal Modrzewski said nations must be able to fully own and control their communications without dependency on a foreign commercial operator's terms of service, while Nokia President and CEO Justin Hotard said sovereign operations depend on secure, resilient connectivity across land, sea, air and space. Modrzewski and Hotard will take the stage at the Helsinki Security Forum on October 2 for a session titled "How to Salvage Europe's Technological Sovereignty."

L3Harris Technologies has won a $461.9M firm-fixed-price contract to provide commercial satellite communications connectivity for designated executive airlift aircraft. The contract supports authorized government personnel, with work expected to continue through October 2028. A total of $62.3M in FY2026 operations and maintenance funds is being obligated at award. The U.S. Space Force at Los Angeles Air Force Base is the contracting activity.