SpaceX barely finished its first week as a public company and Wall Street is already fighting about it. CFRA Research has initiated coverage on SPCX with a Sell rating and a $115 price target, a figure that sits roughly 15% below the company’s IPO price of $135 per share.
A $75 gap between bulls and bears
The spread between analyst targets tells you everything about how divided the Street is on this name. Oppenheimer assigned an Outperform rating with a $190 target on June 11, the day before SpaceX began trading on the Nasdaq. New Street Research landed somewhere in between with a $165 price target.
CFRA’s $115 sits $75 below Oppenheimer’s call. That kind of dispersion on a freshly listed stock is unusual and worth paying attention to.
CFRA analyst Keith Snyder is the one behind the bearish thesis. His pre-IPO research dug into three specific areas: the unit economics of Starlink’s broadband service, the capital intensity of the Starship program, and SpaceX’s nascent push into artificial intelligence.
