SpaceX’s (SPCX) historic IPO kicked off with a valuation few companies ever touch.
Consequently, it also left investors wondering how much upside is left, or whether profit-taking is about to begin.
SpaceX’s stock, priced at $135, raised $75 billion, opening a brand new chapter for Elon Musk’s space empire, according to Reuters.
By its first close, SpaceX had jumped to $160.95, stretching an already heated valuation debate.
For perspective, SpaceX now ranks as the largest U.S. stock-market IPO by amount raised.
According to Investopedia, that puts it comfortably ahead of Alibaba’s $21.8 billion 2014 listing, Visa’s $17.4 billion IPO in 2008, Enel’s $16.4 billion deal in 1999, and Meta/Facebook’s $16 billion debut in 2012.
Nevertheless, the excitement was on the cards from the get-go, but investors stared at a stock that had already moved 20% above its IPO price.
Then Oppenheimer raised the bar.
According to TheFly, the veteran stock market research firm just issued Wall Street’s first major price target on SpaceX, arguing that the bigger story may still be underpriced.
Oppenheimer sees major upside for SpaceX stock as Starlink fuels growthpicture alliance / Getty Images
What Oppenheimer said about SpaceX stock
Oppenheimer’s Timothy Horan gave SpaceX one of its first major Wall Street endorsements after its historic IPO.
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Horan initiated his coverage with an Outperform rating and a $190 price target, implying about 18% upside from SpaceX’s latest reported close of $160.95 after the stock jumped and popped 19% in its Nasdaq debut.
According to him, SpaceX is the “only fully vertically integrated AI company“, spearheaded by its capital, data, large language models, hardware, manufacturing, and engineering talent.
Speaking of Horan, the Oppenheimer analyst who mainly covers technology, communications, and telecom is a 4.70-star analyst, with a 58.82% success rate according to Tipranks.
That broader thesis is why he feels it’s unfair to treat it as a traditional aerospace…
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