SpaceX has a lot to prove following its record-smashing initial public offering, but its shares — even as they’re sliding — have too much upside potential to pass up on, according to Evercore ISI. The investment firm initiated coverage of the space technology name with an outperform rating. It also put a $230 price target on shares, suggesting 65% upside from Monday’s close. “The upside skew is too compelling to ignore,” analyst Kutgun Maral said Tuesday in a note. “While one can debate the feasibility of certain ambitions and timelines, we don’t think there’s a debate that this is an extraordinary company on a real path to reshaping the future of humanity.” Shares have fallen nearly 7% over the past five days amid concerns about its valuation and lofty ambitions. It has also tumbled more than 38% since hitting a peak of $225.64. SPCX 1M mountain SPCX 1-mo chart However, if SpaceX can follow through on several of its projects, including the roll out of heavy-lift launch vehicle Starship by the end of this year, its setup should remain compelling, per Maral. Other key goals for the firm include scaling Starlink broadband and paving a path for Grok to gain ground in the hyper-competitive artificial intelligence market. “Growth can accelerate rather than fade as the decade wears on,” Maral wrote. Evercore ISI’s call falls in line with consensus on the Street. Of the 31 analysts covering SpaceX, 26 have a buy or strong buy on the stock, LSEG data shows.
SpaceX shares are struggling. Evercore ISI still says it’s ‘too compelling to ignore’
