Bank of America called the two pure space playsets a top pick in the growing sector, seeing opportunities for investors in Rocket Lab and Terran Orbital. Space stocks have been hit hard this year, with Bank of America’s Ron Epstein noting that “as interest rates rise, we’ve seen capital dry up, so space stocks sold off significantly. compared to the broader market.” “We think there are still compelling opportunities for investors looking to invest in the end markets of the high-growth space,” Epstein wrote in a note to investors Monday. . “We continue to see increases in federal spending on space and defense capabilities, and we believe this strong growth record will continue to drive the expansion of the space industry. .” The company considers Rocket Lab to have the “best overall portfolio” among pure space players, having successfully executed its acquisition-by-acquisition expansion strategy. Bank of America has a $12 price target for Rocket Lab stock, 132% above the current share price. As of now, Rocket Lab’s stock is down 58% this year. Bank of America enjoys the “strong backlog” of Terran Orbital, with a close partnership with Lockheed Martin after the defense giant added to the existing ownership position with a $100 million investment. la. The company has a $9 price target for Terran Orbital stock, up 240% from current levels – with the company’s stock down 73% this year. The company also named Northrop Grumman a top choice, saying the defense contractor has a “best-in-class space” business. As of 2019, Bank of America said Northrop Grumman’s space unit “has consistently been the fastest-growing business and maintains double-digit revenue growth nearly every quarter.” Bank of America has a $700 price target on Northrop Grumman stock, or 34% above the current share price. – Michael Bloom of CNBC contributed to this report.