Wall Street Banks Issue Divergent Price Targets for SpaceX
Major investment banks initiated coverage of SpaceX following its $86 billion IPO, with price targets ranging from $62 to $800 as shares dipped below debut levels.
Wall Street investment banks initiated coverage of SpaceX Corp on Tuesday after the expiration of the IPO quiet period following the company's $86 billion initial public offering. While most analysts maintain bullish outlooks, the stock fell nearly 7% on Tuesday, closing approximately $11 below its debut price.
Lead underwriters Goldman Sachs, JPMorgan, Bank of America, and Morgan Stanley all issued the equivalent of buy ratings, with price targets between $205 and $300. Morgan Stanley provided the most aggressive growth forecast, projecting annual revenue to climb from $45 billion this year to $3.3 trillion by 2040. Bank of America described the company as a foundational enabler of the space economy, citing a flywheel effect where reusable launch technology generates cash flow for infrastructure like Starlink.
Other firms offered widely divergent valuations. Raymond James set a Street-high target of $800 with a Strong Buy rating, while Morningstar maintained a Sell rating with a $62 target. MoffettNathanson issued a neutral rating and a $131 target, challenging the company's claim of a $30 trillion total addressable market as absurd. Goldman Sachs and Morgan Stanley reportedly earned approximately $500 million in combined underwriting fees from the IPO.
