NEW YORK (AP) — Wall Street banks have high hopes for SpaceX but at the moment shares of Elon Musk’s rocket market appear to be earthbound.Many of the investment firms that underwrote SpaceX’s initial public offering issued their first research notes about the company Tuesday, and almost all recommended that investors buy the stock and forecast it to trade above $200 in the next 12 to 18 months. But after topping $200 in its first week of trading, the stock is trading around $152 per share, just above where it opened on June 12, its IPO day. Investors may be looking cautiously at the same factors that have Wall Street so enthusiastic about the stock.
Analysts are focused on SpaceX’s potential to lead the market for space transportation and infrastructure. The company’s reusable rockets allow it to transport people and cargo into Earth’s orbit and it is aiming for deeper exploration of the solar system. Most of the company’s revenue currently comes from its Starlink satellites, and AI innovations are expected to advance that technology.
“SpaceX’s ambitions, and potential impact on humanity, are bigger than any company’s we’ve ever seen,” said a analysts from J.P. Morgan, in a research report.
