SpaceX shares fell after HSBC set a $115 price target, below its $135 IPO price, despite applying a 2x premium for Elon Musk’s leadership.
HSBC initiated coverage of SpaceX with a Hold rating and a $115 price target, just below the stock’s $115.07 closing price on Friday. The target is also under the $135 price at which SpaceX went public in June, marking a rare instance of a stock trading below its IPO price and a major bank’s fresh target simultaneously.
Shares dropped as much as 6% following the announcement, briefly falling below the $115 target before closing seven cents above it. SpaceX stock has struggled since its debut, peaking at $225.64 shortly after the IPO before declining nearly 50% from that high.
HSBC’s valuation included a 2x premium for CEO Elon Musk’s track record in commercializing disruptive technologies. Despite this, the bank concluded the stock already reflects much of SpaceX’s long-term growth potential, including Starlink expansion and increased launch activity.