DZ Bank initiated coverage of SpaceX with a "Sell" rating and a $100 price target. Analyst Markus Leistner warned of a potential "crash risk in the valuation orbit," citing concerns that the company's current valuation is unjustifiable given the enormous capital required for its future plans.
The bearish outlook comes as the company's stock is navigating a complex environment, including the recent expiration of a post-IPO insider share lockup, which released a significant number of restricted shares. Leistner's concerns extend beyond the core rocket business to SpaceX's costly expansion into new areas like artificial intelligence, highlighted by its recent $60 billion all-stock acquisition of Cursor.