SpaceX stock jumps 19% on second day of trading, but analyst issues 'sell' rating over valuation concerns
By
Arjun Kharpal
10h ago· 3 min readenNews
65/100
Toasty
Bagelometer↗
Crusty in the right places. Worth the chew.
Score65TypenewsSentimentneutral
Summary
SpaceX's stock surged 19% in its first full day of trading after a record debut, pushing the company's valuation to over $2 trillion. However, CFRA initiated coverage with a "sell" rating and a $115 price target, citing concerns over the company's ambitious growth strategy, elevated valuation, and high capital intensity. SpaceX's capital expenditures reached $10.1 billion in Q1, largely driven by AI investments.
Key quotes
· 3 pulledCFRA on Friday initiated coverage of the stock with a 'sell' rating and a 12-month price target of $115, which is a nearly 29% drop from Friday's closing price.
CFRA said its view was 'due to the company's extremely ambitious growth strategy, elevated valuation expectations, and significant capital intensity.'
SpaceX's capital expenditures in the three months ended March totaled $10.1 billion versus $4.1 billion in the same period last year.
SpaceX is valued at over $2 trillion after its stock rallied on the first day of trading last week.
