Bram Berkowitz, The Motley Fool
5 min read
Space Exploration Technologies (NASDAQ: SPCX) is off and running after a successful initial public offering (IPO) on June 12, which raised close to $86 billion. Not only did SpaceX successfully raise the funds, but the stock popped on the first day of trading and has remained well above its IPO price.
Naturally, Wall Street analysts have begun to weigh in. As of June 16, six analyst reports have come out. Here are all the price targets for the stock so far, and the one I agree with most.
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Wall Street ratings
Wall Street analysts play a critical role in shaping stock prices because they issue earnings projections that are averaged to arrive at consensus estimates. When a company beats consensus estimates or issues guidance above the forward consensus, its stock price tends to perform well.
Analysts also apply multiples to their projections to arrive at 12-month price targets for stocks. So far, six Wall Street analysts have issued price targets on SpaceX:
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KGI Securities initiated coverage with an outperform rating and a $227 price target, the highest issued to date.
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Oppenheimer also initiated coverage with an outperform rating and a $190 price target.
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Wolfe Research initiated coverage of SpaceX with an outperform rating and a $175 price target.
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New Street initiated coverage of SpaceX with no rating and a $165 price target.
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CFRA initiated coverage on SpaceX with a sell rating and $115 price target.
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Morningstar initiated coverage of SpaceX with a sell rating and $63 price target.
On average, these six ratings imply a nearly $156 consensus price target, projecting significant downside from the current price of roughly $208 per share (as of this writing). More analysts will likely release their opinions on the stock and price targets in the coming weeks.
Bull vs. bear
While I couldn’t find much information on KGI’s note, Oppenheimer analyst Timothy Horan, in his research note, called SpaceX “the only vertically integrated AI company with the required capital, data, LLMs, hardware, manufacturing and engineering talent.”
Horan sees a potential $10 trillion addressable market for SpaceX by 2035, but noted that the key for the company is getting data centers into space.
Morningstar is currently the most bearish with a $63 price target. A team led by analyst Nicolas Owens examined three main scenarios for SpaceX: a no go, an MVP, and a moonshot.
