SpaceX Stock Gets Neutral Rating With $170 Target as Shares Fall Below Debut Price
Highlights
- Susquehanna has initiated coverage on the SpaceX stock with a neutral rating.
- Analysts give the stock a price target of $170.
- The Spc
Susquehanna analysts have initiated coverage of SpaceX stock, assigning it a neutral rating and a price target of $170. This comes amid the stock’s decline below its debut price of $150, extending its decline after a surge on IPO day.
Susquehanna Initiates Coverage On SpaceX Stock
Susquehanna has set a $170 price target for SPCX stock and forecasts the company to grow revenue at an 81% CAGR and adjusted EBITDA at a 76% CAGR between 2025 and 2028. Furthermore, the analysts also highlighted four competitive advantages for the stock.
The first competitive advantage for the SpaceX stock is the company’s dominant position in rocket launch. Secondly, Susquehanna cited the Starlink business, which they believe has greater upside for growth. Thirdly, the analysts alluded to the company’s early-stage AI business and its demonstrated ability to build AI infrastructure, and lastly, they noted that the company’s CEO, Elon Musk, is a “proven operator.”
However, Susquehanna also noted that the current valuation of SpaceX stock requires premium multiples based on very aggressive revenue and EBITDA growth assumptions. They added that several outcomes exist for the company, given how it operates in some markets that are relatively unproven, which introduces a bit of risk into future expectations. As such, they believe it is better to wait for a better entry before investing in the stock.
It is worth noting that analysts at KeyBanc also recently initiated coverage with a neutral rating on the SPCX stock. This also comes amid SpaceX’s issuance of its first bond offering, with the company reportedly seeking to raise up to $20 billion.
Peter Schiff Warns About The Stock
In an X post, renowned economist Peter Schiff warned about the SpaceX stock. He noted that the current float is tiny, which drove the initial surge on IPO day. However, Schiff added that by December 8, the float could rise from about 640 million shares to 7.5 billion, an increase of almost 12x.
“That’s a massive supply overhang for a stock priced for perfection and already falling,” he said. Despite reservations about SPCX, investment managers such as Cathie Wood’s ARK Invest are buying the dip. As CoinGape reported, ARK Invest bought 210,121 shares for almost $33 million.
The SpaceX stock notably dropped below its debut trading price of $150 earlier today. However, the stock has rebounded and is now trading at around $157, up almost 2% today, according to TradingView data. However, the stock is down over 16% over the last five days.
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