Wall Street analysts are trying to rescue Elon Musk’s floundering IPO, SpaceX after the stock erased $1.1 trillion of market capitalization in five weeks.
Almost every Wall Street analyst has a price target (PT) higher than the stock price, with reiterations and upgraded forecasts arriving by the day, and all 12 IPO underwriters whose analysts have published research on SPCX rated it a “buy” or equivalent.
Bullish analyst ratings have showered Musk’s company with weeks of praise as the stock price has crashed. Yesterday, Macquarie reiterated its “outperform” rating with a PT 100% higher than SPCX’s closing price.
Last week, Piper Sandler initiated coverage with a $156 PT, $32 higher than yesterday’s close. The same week, Needham maintained its buy rating and increased its PT 25% to $250, Evercore ISI Group initiated at outperform with a $230 PT, and Zephirin Group initiated coverage at buy with a $310 PT.
The tone around these ratings has been one-sided for weeks. Ratings by the investment banks that actually helped sell the stock during the IPO have sustained a sound wall shouting nothing but buy.
Raymond James initiated coverage at “strong buy” and an $800 PT. Eight hundred dollars.
The stock closed yesterday below $125, down 45% from its June 16 high.