HSBC Initiates Coverage on SpaceX with Hold Rating and $115 Price Target
On Friday, HSBC initiated coverage on SpaceX (SPCX) with a 'Hold' rating and set a price target of $115. This valuation is below the company's June IPO price of $135 but nearly matched the stock’s closing price at $115.07. Despite applying a 2x premium to account for Elon Musk’s track record, HSBC concluded that much of SpaceX’s long-term growth potential was already priced in. The bank acknowledged optimistic scenarios where Starship becomes commercially viable by 2027 could push the stock up to $293 per share. However, this remains a ceiling case rather than an expectation. The broader market has been more bullish on average price targets for SpaceX, with estimates ranging from $62 to as high as $800. SpaceX's valuation is currently over 75 times its sales and it remains unprofitable due to heavy investments in Starship development. Investors will get their first public financial report on August 4, which may provide clarity amid the current uncertainty.
Tickers: $SPCX
Topics: coverage initiation HSBC price target SpaceX