DZ Bank initiates coverage with a Sell rating, citing unsustainable spending and a 25% downside from current levels.
SpaceX shares fell to $134 on August 20, down 17% year-to-date and far below their June high of $225.64. The decline comes as DZ Bank analyst Markus Leistner initiated coverage with a Sell rating and a $100 price target, implying a 25% drop from current levels. Leistner warned of “crash risk in the valuation orbit” due to massive capital expenditures.
The company spent $18.37 billion on capital projects in Q2, with $15.83 billion directed toward AI computing infrastructure. Wall Street remains largely bullish, with an average price target of $228.59, but Leistner’s call stands in stark contrast. A wave of unlocked shares hitting the market this week has added to investor concerns.
Most analysts still recommend buying SpaceX stock, but the new Sell rating and heavy spending outlook have rattled some investors. The stock’s recent slide reflects growing unease over its valuation and cash burn.