Elon Musk's SpaceX is days away from what may be the biggest IPO ever, but Morningstar is telling investors to sit out the listing and wait for a cheaper entry.
Morningstar Analyst Nicolas Owens has put a $780 billion weighted base case on SpaceX, roughly 56% below the $1.77 trillion valuation implied by the company's $135 fixed IPO price.
"People will have an opportunity to get a better margin of safety than they're likely to see on the day of the IPO, or even in the weeks right after," Owens said.
Why Morningstar Sees Better Entry Points Ahead Owens told viewers the firm's $1.9 trillion upside case, which prices SpaceX at $154 per share, hinges on Starship reusability scaling and the commercialization of orbital AI data centers.
He assigns that "priced for perfection" outcome a roughly 7% probability.
