As Space Exploration Technologies Corp. (NASDAQ: SPCX) closes out two weeks of trading, Steve Silver, an analyst at Argus Research, has initiated coverage of SpaceX stock.
On June 26, the Wall Street analyst initiated a ‘Hold’ rating for SpaceX stock. However, Silver did not provide a specific price target for SPCX stock for the coming 12 months.
He flagged several factors that lead to a neutral stance on SpaceX stock. For instance, he noted that while the company is growing strongly at the top line, it has yet to achieve consistent profitability.
As such, the analyst highlighted that SpaceX has been operating a hybrid business model that blends mature infrastructure with venture-style growth investment, thereby complicating near-term earnings visibility.
The analyst also pointed to the tight supply of SPCX shares and upcoming post-IPO lockup expirations as additional drivers of near-term volatility. At roughly 95 times 2025 revenues, Argus said it may likely be years before the valuation multiple normalizes to more typical levels.
“The IPO valuation implied a price-to-sales multiple of approximately 95-times 2025 revenues…we think it will likely be years before SPCX’s multiples land at more normal levels,” Argus noted.
SpaceX stock price forecast and performance
Following the Argus rating on SpaceX, the average Wall Street target for the company’s stock hovered around $222.20 at the time of reporting, according to data from TipRanks. Out of the 7 analysts that have set SpaceX stock price target for 12 months, the highest target is $401, while the lowest was $115 at the time of publication.
Since it began trading earlier this month, SpaceX stock price has added about 13.45%, trading at about $153.16 at the time of publication. As such, the company had a market capitalization of about $2 trillion, already down $1 trillion from its top as Finbold reported. However, the company’s outlook could be bolstered by rising demand for AI stocks, especially after its acquisition of an AI-focused startup, as Finbold highlighted.
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