Space Exploration Technologies Corp. (NASDAQ:SPCX) is one of the 14 AI Stocks Making Moves on Wall Street: Nvidia, Micron, and More.
On June 26, Argus initiated SpaceX as “Hold,” citing concerns over valuation and volatility
We are initiating coverage of Space Exploration Technologies Corp. (Nasdaq: SPCX) with a HOLD rating. The firm noted how SpaceX’s IPO valuation implies a high price-to-sales multiple of an estimated 95 times 2025 revenues. Even though the company is growing, it is not yet profitable.
It believes that SPCX may take years before its multiple achieves normal levels. While growing at the top-line level, the company is not yet consistently profitable, as its operating plan combines characteristics of both a mature infrastructure business and a venture-style growth investment. Thus, we think it will likely be years before SPCX’s multiples land at more normal levels.