SpaceX wins bullish bank coverage after IPO quiet period ends
Fresh analyst backing is reinforcing investor interest in SpaceX as trading settles after its record initial public offering last month. The new recommendations arrive as the Elon Musk-led AI and rocket company joins the Nasdaq 100, a move that is forcing index-linked funds to buy the stock.
Highlights
- Goldman Sachs, UBS, and Morgan Stanley initiate bullish coverage on SpaceX after the IPO quiet period, with price targets ranging from $210 to $300.
- SpaceX shares closed at $160 on Monday, rising from an IPO price of $135, and traded down 1.5 per cent at $158 pre-market Tuesday.
- SpaceX secures early inclusion in the Nasdaq 100, FTSE Russell, and MSCI indices, requiring index-tracking funds to buy shares and boosting market demand.
Bank ratings and valuation targets
As reported by Financial Times, several Wall Street banks begin coverage of SpaceX on Tuesday after the post-IPO quiet period ends for underwriters of the listing.Goldman Sachs, UBS and Morgan Stanley issue bullish recommendations or their equivalents, adding support for the stock after it rises from its IPO price of $135 to as high as $225 before closing near $160 on Monday. In pre-market trading on Tuesday, the shares are down 1.5 per cent at $158.
Morgan Stanley rates the stock “overweight/attractive” and sets a $300 price target, while Bernstein assigns an “outperform” rating with a $239 target. UBS starts coverage with a buy rating and a 12-month target price of $210, saying the $2tn company has “an unparalleled set of assets” in reusable rockets and its Starlink satellite constellation.
UBS also says progress in chatbot Grok and SpaceX’s acquisition of AI coding start-up Cursor are poised to narrow the gap with frontier AI groups OpenAI and Anthropic.
Index inclusion boosts market demand
SpaceX also joins the Nasdaq 100 on Tuesday, requiring tracker funds tied to the technology-heavy index to purchase the shares.Companies typically wait up to a year after listing to enter major indices tracked by funds managing trillions of dollars. SpaceX, however, secures earlier entry from index groups including Nasdaq, FTSE Russell and MSCI, extending the market support behind the newly listed company.
Our earlier coverage on SpaceX’s rapid Nasdaq 100 inclusion explained how the stock’s entry just days after its market debut could trigger billions of dollars in passive buying as index-tracking funds rebalance. We also noted that the end of the IPO quiet period was set to bring the first wave of full Wall Street valuations, with bullish initiations alongside a notable split over whether the company’s market cap is justified by its space-and-AI ambitions.
Latest Nasdaq Inc News
-
Afghanistan
-
Albania
-
Algeria
-
Angola
-
Argentina
-
Armenia
-
Australia
-
Austria
-
Azerbaijan
-
Bahamas
-
Bahrain
-
Bangladesh
-
Belarus
-
Belgium
-
Bolivia
-
Botswana
-
Brazil
-
Brunei
-
Bulgaria
-
Cambodia
-
Cameroon
-
Canada
-
Chile
-
China
-
Colombia
-
Congo
-
Costa Rica
-
Cote d'Ivoire
-
Croatia
-
Cuba
-
Cyprus
-
Czechia
-
DR Congo
-
Denmark
-
Dominican Republic
-
Ecuador
-
Egypt
-
El Salvador
-
Estonia
-
Eswatini
-
Ethiopia
-
Finland
-
France
-
Georgia
-
Germany
-
Ghana
-
Greece
-
Haiti
-
Hong Kong
-
Hungary
-
India
-
Indonesia
-
Iran, Islamic republic
-
Iraq
-
Ireland
-
Israel
-
Italy
-
Jamaica
-
Japan
-
Jordan
-
Kazakhstan
-
Kenya
-
Korea
-
Kuwait
-
Kyrgyzstan
-
Laos
-
Latvia
-
Lebanon
-
Lesotho
-
Libya
-
Lithuania
-
Luxembourg
-
Madagascar
-
Malaysia
-
Malta
-
Mauritius
-
Mexico
-
Moldova
-
Mongolia
-
Montenegro
-
Morocco
-
Mozambique
-
Myanmar
-
Namibia
-
Nepal
-
Netherlands
-
New Zealand
-
Nigeria
-
North Macedonia
-
Norway
-
Oman
-
Pakistan
-
Palestine
-
Panama
-
Papua New Guinea
-
Paraguay
-
Peru
-
Philippines
-
Poland
-
Portugal
-
Puerto Rico
-
Qatar
-
Reunion
-
Romania
-
Rwanda
-
Saudi Arabia
-
Serbia
-
Singapore
-
Slovakia
-
Slovenia
-
Somalia
-
South Africa
-
Spain
-
Sri Lanka
-
Sweden
-
Switzerland
-
Syria
-
Taiwan
-
Tajikistan
-
Tanzania
-
Thailand
-
Trinidad and Tobago
-
Tunisia
-
Turkey
-
UAE
-
Uganda
-
Ukraine
-
United Kingdom
-
United States
-
Uruguay
-
Uzbekistan
-
Venezuela
-
Vietnam
-
Yemen
-
Zambia
-
Zimbabwe
- Forex
- Crypto
