Analysts initiate a buy rating on SpaceX with a $255 target, citing long-term potential despite a 37% drop from its peak.
SpaceX shares have fallen 37.5% from their mid-June peak of $225.64 to around $141, dipping below the $150 debut price and nearing the $135 offering level. The decline follows a surge driven by passive index fund buying after the stock joined the Nasdaq-100, which reversed once demand subsided.
Deutsche Bank analysts issued a buy rating with a $255 price target, suggesting significant upside from current levels. The call reflects confidence in SpaceX’s core business, particularly its rocket launch reliability, despite recent volatility.
The stock’s pullback is attributed to sentiment rather than fundamentals, as mechanical buying pressure faded and momentum shifted. The $255 target implies a rebound if the long-term thesis holds.