KeyBanc Capital Markets has expressed caution regarding SpaceX's stock valuation, which has risen approximately 27% since its IPO price of $135 but has also seen a decline of over 20% from its peak.
The investment bank's analysis indicates that while SpaceX has significant growth opportunities, particularly with its Starlink and connectivity businesses, the current enterprise value of around $2.2 trillion may be overly optimistic. KeyBanc estimates a more conservative enterprise value of about $1.02 trillion, based on discounted future cash flows.
A major concern for the bank is the Starship program, which is crucial for SpaceX's future ambitions but has faced delays and setbacks. Additionally, the upcoming release of insider shares could create liquidity issues in the near term, as only about 5% of SpaceX's 13 billion shares are currently available for trading.
This situation suggests that investors should be cautious as the market adjusts to these developments