SpaceX stock remains under pressure after Susquehanna initiated a $170 price target while warning that the company’s valuation depends on aggressive growth assumptions.
Summary
- Susquehanna initiated coverage of SpaceX with a neutral rating and a $170 price target.
- The brokerage cautioned that the stock’s valuation depends on aggressive revenue and EBITDA growth forecasts.
- Peter Schiff flagged a potential dividend increase, while ARK Invest continued to buy the recent dip.
According to a research note from Susquehanna, the brokerage assigned SpaceX a neutral rating and set a $170 price target on the stock as shares continue to trade below their initial $150 price following a sharp post-IPO rally and subsequent pullback.
The company projects SpaceX’s revenue to grow at a CAGR of 81% between 2025 and 2028, while adjusted EBITDA is expected to expand at a CAGR of 76% over the same period. Even with those forecasts, Susquehanna cautioned that the stock’s current valuation warrants a multiple of a premium and leaves room for multiple outcomes as several of the company’s businesses operate in markets that remain untested.
At current levels, the brokerage said it would prefer to wait for an attractive entry point before building more on the stock.
Analysts point to improvements in drivers but remain cautious
In its consolidated report, Susquehanna outlined four factors that support the company’s long-term case. The first was SpaceX’s leading position in the rocket launch industry, which continues to provide a competitive advantage over competitors.
Apart from launch facilities, analysts have identified Starlink as a major source of future growth. The report also pointed to the company’s early artificial intelligence initiatives and its ability to build large-scale AI infrastructure. Rounding out the list was CEO Elon Musk, whom Susquehanna described as a proven operator with a track record of building and growing businesses.
However, the brokerage argued that much of the expected growth may come from current calculations.
As crypto.news reported, KeyBanc analysts adopted a similar stance on Monday, initiating coverage of SpaceX with a neutral rating. The cautious outlook for both companies comes as the company is reportedly looking to raise $20 billion in its initial bond offering.
Investors’ attention also turned to how other high-end private market stocks traded after gaining wider access to retail participants. Anthropic pre-IPO futures, for example, have dropped 9% since the start of Coinbase despite the artificial intelligence company announcing a partnership with Micron Technology. The decline suggested that traders are always focused on future valuation risks rather than recent business developments.
Feed concerns are adding pressure to stocks
Elsewhere, economist Peter Schiff expressed concern about the future use of stocks in a June 23 X post.
Schiff argued that the small public float helped offset SpaceX’s first-day gains from the explosion. However, he warned that the number of shares available for trading could increase significantly over time. According to Schiff, the float may increase from about 640 million shares to 7.5 billion shares on December 8, which represents a twelvefold increase.
“That’s a huge glut of fully priced stock that’s already down.”
Despite those concerns, some institutional investors continued to add exposure. As previously reported by crypto.news, ARK Invest bought more than 210,000 shares of SpaceX worth about $32.5 million after the recent decline.
SpaceX stock fell below its initial price of $150 earlier in the session before recovering. Data from Yahoo Finance showed shares were changing hands around $158.40 at press time, up 2.4% on the day but down more than 17% over the past five trading sessions.
