SpaceX (SPCX) shares saw a modest recovery on Tuesday, rising after a steep multi-day sell-off that erased a significant portion of gains from its highly anticipated June 12 IPO. The stock, which peaked at over $225, had fallen to around $154. The rebound coincided with Susquehanna Financial Group initiating coverage on the company.
Susquehanna started SpaceX with a "Neutral" rating and a $170 price target. The firm acknowledged the company's dominant position in rocket launches and the strong growth potential of its Starlink satellite business. However, the analyst cautioned that the current valuation requires "premium multiples on very aggressive growth assumptions," introducing "quite a bit of risk" and advising investors to wait for a better entry point.