HSBC built its valuation as a sum of the parts, adding up what it believes SpaceX's businesses are worth. Then it did something unusual. It applied a 2x premium to account for CEO Elon Musk's track record of commercializing disruptive technologies. In other words, the bank built a 2x innovation premium into its sum-of-the-parts math, on the theory that Musk has repeatedly built industries where none existed.
Even with that premium, the answer came back at $115, along with a conclusion that the price already reflects much of the company's long-term growth potential — including continued expansion of Starlink, rising launch activity, and the development of its artificial intelligence initiatives. The bank did sketch a friendlier picture. Its most optimistic scenario, which assumes the Starship rocket becomes commercially viable starting in 2027 and launch capacity doubles, values the stock at $293 per share. But that's the ceiling case, not the expectation.
https://finance.yahoo.com/markets/stocks/articles/hsbc-just-started-covering-spacex-232800998.html
HSBC Started Covering SpaceX With a $115 Price Target 5, along with a conclusion that the price already reflects much of the company's long-
byu/vulcan_on_earth instocks
Posted by vulcan_on_earth
3 Comments
Would anyone here do their SpaceX strategy differently now that they’ve seen what happened?
I thought the overall sentiment pre IPO was HUGE interest, oversold and over priced. So the strategy was to buy the open and get out before the drop.
The equity applied 2x because otherwise the price target would be under 60 and his boss wouldn t allow it
There is no reasonable verdict or estimate until all the lockups are gone. I’m waiting until December/January and then I look forward to dumping a large % of my portfolio into it ($50-80, happy), then forgetting my password for a decade.