SpaceX (SPCX) Receives $190 Price Target With Outperform Coverage Ahead of IPO

The SpaceX (SPCX) initial public offering (IPO) has continued to take the market by storm, with many eagerly waiting for its US market debut. Notably, a recent report suggests that the IPO is likely to pull over $70 billion in retail orders.

Amid this, Wall Street analysts have begun issuing early coverage for the SpaceX stock ahead of the IPO. In addition, the investors’ appetite appears strong, with early indications pointing to massive retail participation for SPCX.

Wall Street Remains Bullish on SpaceX Ahead of IPO

The leading Wall Street firm, Oppenheimer, has initiated coverage on SPCX stock with an “outperform” rating. Besides, it has also provided a price target of $190 for SpaceX, marking a significant upside from the expected IPO price of $135.

Meanwhile, Oppenheimer expects SpaceX to integrate space-based infrastructure with AI-driven technologies. It also sees the company leveraging its terrestrial computing capabilities to scale efficiently. This hybrid approach could help reduce costs while expanding service offerings.

However, Senator Elizabet Warren has recently urged the US SEC to delay the much-awaited Friday debut of SpaceX. Although the investors’ confidence remain strong, this report has sparked discussions among global traders.

Notably, Oppenheimer also lifted its estimate for Elon Musk’s Tesla (TSLA) stock, citing stronger demand for electric vehicles as oil prices remain high. While the SpaceX IPO hype might help the TSLA stock growth in the short-term, the analyst argued that the long-term outlook hinges on the EV-maker’s AI strategy and electric vehicle demands.

Meanwhile, another Wall Street giant, New Street Research, has also initiated a price target of $165 for the SpaceX stock post-IPO. This also marks a surge of 22% on the proposed IPO for SPCX.

Retail Investors Drive Massive Demand

With the SpaceX IPO now the talk of the town, recent reports have further increased the appetite of the investors. For context, a recent report, citing people familiar with the matter, said that the IPO could attract more than $70 billion in retail orders.

This reflects strong interest from individual investors eager to gain exposure to the company. Notably, in terms of allocation, the company is expected to reserve at least 20% of shares for retail investors.

Meanwhile, this move could broaden participation and improve market accessibility for the firm. On the other hand, less than 10% of SpaceX stocks may be allocated to international buyers, signaling a U.S.-focused IPO strategy.