SpaceX’s close on Tuesday was just below its opening price, ending the day at $149 a share. Tuesday also happened to be the day that SpaceX was eligible to be included in the Nasdaq 100, the fastest company to ever do so.
Although the company has fallen, Wall Street’s biggest banks are happy to bail it out.
JPMorgan Chase recently gave SpaceX an Overweight rating and has a price target of $225 a share.
Analysts say “SpaceX’s ambitions — and potential impact on humanity — are bigger than any company’s we’ve ever seen,” going on to say, “While SpaceX has already reached a $2T+ market cap post its IPO, we believe significant upside potential remains as the company quite literally builds out the next frontier.”
Morgan Stanley has a price target of $300 for SpaceX, with an Overweight rating as well.
Morgan Stanley analysts say “SpaceX combines near-monopoly launch economics, the world’s largest LEO satellite network, and a fast-scaling AI infrastructure business,” further saying, “We see the company as one of the few platforms that can link real estate in orbit, global connectivity, and compute capacity into one infrastructure stack.”
Bank of America has a Buy rating for SpaceX and a price target of $235 a share.
“SpaceX has evolved from a launch company into the foundational enabler of the space economy and the leading provider of space-based applications as a result,” analysts said. “SpaceX’s extensive moats on reusable launch and proliferated space applications are in our view laying the foundation for Starship and future applications to drive another paradigm shift in capabilities.”
Goldman Sachs also has a Buy rating, its price target is $205.
“We see the company as well positioned to scale its differentiated advantages across space (launch & reusability), connectivity (broadband & mobile satellite constellation) and AI (compute, X, etc.) — with each of these markets having the potential to become multiple trillion-dollar opportunities over a 5+ year time horizon,” analysts wrote.
With the company’s inclusion in the Nasdaq-100, it forces ETFs tracking the Nasdaq-100 to buy shares. Now, unlike the S&P 500, the Nasdaq takes into account a company’s float, the fund is balanced based on the number of shares available to the public.
Currently, less than 5% of the shares outstanding are publicly trading, the remaining shares are locked up and cannot be sold yet. As of now, indexes tracking SpaceX aren’t going to push the stock with buying, but later on as the float increases, the Nasdaq-100 will likely increase SpaceX’s weighing since more of the company will become available as insiders sell.
