- The United Launch Alliance joint venture between Boeing (NYSE:BA) and Lockheed Martin (NYSE:LMT), along with SpaceX, are the two go-to rocket suppliers for the U.S. Air Force, but Jefferies analysts think the next round of contracts could see Orbital ATK (NYSE:OA) gain a foothold.
- "An eventual down-select for the program would require unseating two well positioned competitors in ULA and SpaceX," Jefferies says. "Despite this, Orbital ATK has many aspects of the offering that position it for what we would view as an upset."
- Part of this comes through synergies from OA's pending acquisition by Northrop Grumman (NYSE:NOC), which Jefferies says gives both companies greater reach into the growing space economy.
- OA also has a "diverse business base, across space and defense" that provides "an operational advantage," Jefferies says, and "the manufacturing and supply base also would be leveraged across the company's strategic rocket and launch vehicle business."