SpaceX (NASDAQ:SPCX) is one of the 15 AI Stocks Analysts Are Watching: Microsoft, Nvidia, and More.
On June 22, KeyBanc initiated the stock as Sector Weight; noting that it is fairly valued and that it doesn’t see a clear reason to buy or sell the stock at current levels
SPCX possesses significant disruptive growth avenues, though we believe this is reflected in current valuation and risk/reward appears balanced, in our view. While SpaceX has huge plans through its Starlink and Starship rocket, the firm is not yet enthusiastic about them. It noted how Starship, the giant reusable rocket, is yet to mature and has suffered setbacks, pushing back timelines several years.
While we believe Starship will ultimately achieve success, we take a conservative approach on its development timeline. Risk/reward appears balanced until we achieve greater visibility on Starship’s progress. A more immediate concern, the firm noted, is how the structured lockup schedule will gradually release additional shares into the market over time.