Aerojet Rockedyne stock is a buy despite competition from SpaceX and others, RBC says

The four RS-25 engines slated to fly on the maiden flight of NASA's SLS rocket, at the company's facility at NASA's Stennis Space Center.
Aerojet Rocketdyne

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RBC Capital Markets upgraded its rating of Aerojet Rocketdyne's stock to outperform from sector perform on Tuesday, as the firm sees the company maintaining a key role in the $10 billion rocket launch market.

Aerojet Rocketdyne is "well positioned" in its missile defense, which makes up about 60% of its sales, RBC said. The company also "holds strong" in its position in the space industry, RBC added, which makes up the other 40% of its sales — although the firm highlighted SpaceX, Blue Origin, and Virgin Galactic as a few companies that "have aggressively taken share from AJRD's key customers."

Shares of Aerojet Rocketdyne rose more than 5% in midday trading from its previous of $40.67, although the stock remains down about 6% this year.

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