An upstate New York-based manufacturer is getting a boost after SpaceX went public this month. Graham Corporation , a maker of fluid, power, heat transfer and vacuum equipment for the defense, energy and space sectors, is seeing increased Wall Street bullishness in the wake of SpaceX’s $1.77 trillion initial public offering less than two weeks ago. Graham’s closing market value Tuesday stood at a little less than $1.3 billion. Maxim Group this week boosted its 12-month price target on Graham to $128 a share from $115 after Graham hosted an investor day last week, where the company introduced new three-year financial guidance through 2029 and highlighted several growing markets. “We believe Graham will grow revenue due to increasing demand from multiple types of industrial customers, including the U.S. Department of War, nuclear power companies, and space companies such as Blue Origin and SpaceX, both named as customers in GHM’s presentation,” Maxim analyst Tate Sullivan wrote Tuesday, reiterating a buy opinion. Rampant bullishness Other investment banks came away similarly bullish after hearing from Graham Chief Executive Officer Matthew Malone and Chief Financial Officer Christopher Thome. The investor day highlighted growth prospects, margin expansion opportunities and continued robust demand, Northland Capital Markets analyst Bobby Brooks wrote Tuesday, repeating an outperform rating. “We are updating our estimates following GHM’s Investor Day, which reinforced our confidence in the story and the company’s ability to deliver profitable growth over the coming years via growth initiatives, operational improvements and continued investment in capacity and capabilities,” Brooks said. Graham’s new sales strategies, increased aftermarket focus and other initiatives will drive upside, Northland said, raising its 12-month share price to $135 from $111 previously. Long before the investor day, Oppenheimer had initiated research coverage on Graham back in March with an outperform rating. On June 8, also before management addressed analysts, Oppenheimer analysts Christopher Glynn and Patrick Schuchard raised their target to $110 from an earlier $110. “Our Outperform rating reflects unique positioning of production assets and end-market alignments for exceptional long-term growth and margin expansion visibility,” the analysts wrote earlier this month. Graham has “answered the call” to help revitalize the U.S. Navy and military supply chain using a new Naval facility on its Batavia, N.Y. campus and completing new test facilities this year in New York, Colorado and Florida, Oppenheimer said in March. The company sees the potential for three more facilities in Batavia over the next three to five years. Space economy But lately, a lot of the perceived value in Graham, which sells for about 96 times trailing earnings according to FactSet data, comes from strategic acquisitions that play into the space industry. Graham expanded into the space business in 2021 by acquiring Barber-Nichols , a supplier of specialty turbomachinery, pumps and electronic drives. Global space economy revenue stood at roughly $613 billion in 2024, and is projected to pass $1 trillion as soon as 2032, the Space Foundation says, driven by a booming commercial market that’s rapidly monetizing advancements in communications and earth observation satellites. Last November, Graham won orders worth $22 million from leading space customers, including SpaceX. At the time, Graham was changing hands at about $62 a share. The stock closed Tuesday at $109.77.
