Analysts Initiate Bullish Coverage on SpaceX After Quiet Period

Wall Street firms began research on SpaceX (SPCX) following the end of the 25-day quiet period that followed the aerospace company's June IPO.

Brokerages issue mostly buy ratings with wide price target range. Goldman Sachs and Morgan Stanley, the two lead underwriters, both started with buy-equivalent ratings. Goldman analyst Eric Sheridan set a price target of $205, while Morgan Stanley's Adam Jonas assigned a $300 target, according to MarketWatch. Raymond James analyst Brian Gesuale launched coverage with a Strong Buy rating and an $800 price target.

Analysts at Bank of America, Citigroup, Deutsche Bank, JPMorgan, Macquarie, RBC Capital Markets, UBS and Wells Fargo also initiated coverage with buy or equivalent recommendations. More than a dozen brokerages began coverage with top ratings, Reuters reports. The stock, which priced at $135 in the $75 billion June IPO, traded at $150.93 on Tuesday.

Analysts highlight SpaceX's position in launch services, Starlink and government contracts. Coverage cited the company's strength across launch services, satellite broadband via Starlink and government contracts. Firms noted its capacity to produce recurring revenue from the communications segment as it increases launch frequency. "We see the company as one of the defining industrial infrastructure companies of the 21st century," Gesuale and his team wrote in a research note, per Investor's Business Daily. The firm applied a DCF valuation with a 27x exit multiple on 2031 EBITDA.

Morgan Stanley described SpaceX as "AI's final frontier," Reuters reports. The widespread positive calls reflect confidence in multiple fast-growing areas. SpaceX held 18,712 bitcoin as of March 31.

Quiet period end enables first formal research from underwriters. Expiration of the quiet period allowed underwriting banks to release formal research for the first time. While upbeat initiations often follow large IPOs, the near-universal bullish stance on SpaceX stands out. Nearly every major firm began coverage with a buy-equivalent recommendation.

The shares remain more than 6% below post-listing highs yet stay above the offering price. SpaceX went public in one of the year's largest IPOs. The coverage provides investors a clearer view of how institutional analysts value the newly public company.