Wall Street issues bullish SpaceX ratings, one analyst stays cautious

SpaceX drew 14 Buy-type ratings and one Hold on July 7, with analysts setting an average target of about $236 a share, roughly 47% above the $135 IPO price. Many of the same banks that sold those shares in June were now telling clients the stock deserved a higher valuation, and Goldman Sachs, Morgan Stanley and UBS were among the firms issuing bullish calls.

The ratings burst arrived the same day SpaceX joined the Nasdaq-100, a move that could unleash billions of dollars in passive buying from index funds. Funds tracking the benchmark have to buy in step with the index, creating automatic demand for the stock even before any fresh business results arrive. SpaceX shares slipped below their first-day opening price as the debut day unfolded, with the drop coming amid a broader tech slump.

SpaceX, a $2 trillion-plus rocket and satellite company, is still being priced off a short public history and a valuation that leans heavily on future execution. The bullish case also rests on SpaceX’s limited competition in launch services and on the belief that index demand can reinforce the stock price. The company also sits inside a web of federal oversight: the Federal Aviation Administration licenses commercial launches and reentries, while the Federal Communications Commission governs satellite and spectrum authorizations.