HSBC analysts initiated coverage of Space Exploration Technologies Corp. (SPCX) stock with a Hold rating and a $115 price target, according to TheFly. Shares have fallen approximately 13% from the initial public offering price of $135, trading down 2% in Friday's pre-market session. The firm cited caution about pricing in futuristic opportunities such as space-based data centers, Terafab and the lunar economy, seeing marginal downside from current levels even after accounting for an innovation premium. HSBC acknowledged SpaceX remains the clear leader in the commercial space launch market, supported by strong execution, technological edge and a long track record of innovation.
HSBC Cites Caution On Futuristic Opportunity Pricing
HSBC stated in its note that it remains cautious about pricing in futuristic opportunities such as space-based data centers, Terafab and the lunar economy. Even after accounting for an innovation premium, HSBC sees a marginal downside from the stock's current levels.
The firm's $115 price target implies a potential downside of approximately 3% compared to Thursday's closing price. However, HSBC acknowledged that SpaceX remains the clear leader in the commercial space launch market, supported by its strong execution, technological edge and long track record of innovation. The firm believes the company is well positioned to benefit from growing demand for launch services and its expanding space ecosystem.
SpaceX Turns Away Falcon 9 Customers Beyond 2028
According to a Bloomberg report, SpaceX has started turning away satellite operators seeking dedicated Falcon 9 launches beyond 2028, paused future reservations for its Falcon rideshare program and scaled back production of some non-reusable Falcon components.
The report stated SpaceX has stopped building some non-reusable Falcon components, including the rocket's upper stage, and is no longer accepting future reservations for its Falcon 9 rideshare program. SpaceX's plans could still change depending on Starship's development progress. The company is expected to continue using Falcon 9 for certain missions for NASA and the U.S. Department of Defense.
SpaceX is scheduled to undertake the 13th test flight of Starship on Friday. This comes amid multiple delays in Starship test flights recently, while the launch vehicle remains under development.
SPCX Stock Down 21% Year-To-Date
SPCX stock is down 21% year-to-date. The Invesco QQQ Trust (QQQ) and the Invesco NASDAQ 100 ETF (QQQM) are up 23% over the past 12 months.
Retail sentiment on Stocktwits around SpaceX trended in the bearish territory, with message volumes at high levels at the time of writing.
FAQ
What rating did HSBC assign to SPCX stock?
HSBC analysts initiated coverage of SPCX with a Hold rating and a $115 price target, according to TheFly. The price target implies a potential downside of approximately 3% compared to Thursday's closing price.
Why is HSBC cautious about SpaceX stock?
HSBC stated in its note that it remains cautious about pricing in futuristic opportunities such as space-based data centers, Terafab and the lunar economy. Even after accounting for an innovation premium, HSBC sees a marginal downside from the stock's current levels.
What changes has SpaceX made to its Falcon 9 program?
According to a Bloomberg report, SpaceX has started turning away satellite operators seeking dedicated Falcon 9 launches beyond 2028, paused future reservations for its Falcon rideshare program and scaled back production of some non-reusable Falcon components, including the rocket's upper stage.
