Following SpaceX's recent IPO, most analysts have expressed optimism about the company's future, but MoffettNathanson has taken a more cautious stance. They set a price target of $131, indicating a potential decline from the stock's closing price of $160.42.
The firm argues that traditional valuation methods do not support SpaceX's current $2 trillion valuation and describes the company's projections, including a $30 trillion total addressable market, as unrealistic. They also express skepticism about ambitious goals set by CEO Elon Musk, such as deploying 100 gigawatts of compute capacity into orbit by 2029.
Despite these concerns, MoffettNathanson refrains from issuing a sell rating, acknowledging that investors may be valuing SpaceX based on its potential for future innovations. They highlight regulatory risks as a long-term concern but note that these challenges are likely years away.
Overall, while the analysts are skeptical of current forecasts, they recognize the significant competitive advantages SpaceX holds in the market