Phillip Securities analyst Glenn Thum recently set a target price of $75 per share for Space Exploration Technologies (NASDAQ: SPCX).
As of the time of this writing, that would amount to a 45% decline in the stock price
Moreover, Thum has a five-star rating on TipRanks and an 87% success rate, which has won him considerable credibility. Admittedly, only two out of 35 analysts rate SpaceX as a sell, and certainly, such forecasts do not always come to pass. Nonetheless, it highlights some risks with owning SpaceX stock.
Here’s why investors would probably serve themselves well by heeding this warning. The bearish SpaceX call Thum pointed out a few reasons for his negative outlook on this company. He noted its capital expenditures (capex), which now amount to approximately 2.4 times SpaceX’s revenue in the second quarter of 2026.