One Wall Street Analyst Sees More than 400% Upside in SpaceX Stock. Why I'm Still Not Buying.
Raymond James placed an $800 target on SpaceX stock.
Overview
Following a quiet period for IPO underwriters, Wall Street firms were out with a bevy of largely bullish stock initiations on Space Exploration Technologies (NASDAQ: SPCX), or SpaceX. But one certainly stood out from the rest. Raymond James, which was an underwriter on the IPO, started coverage of the stock with a "strong buy" rating and a whopping $800 price target.
Now it's worth noting that early analyst ratings of recent IPOs tend to be bullish. After all, the firms that are underwriters on an IPO make a lot of money, and they aren't going to get a lot of new business if they start coming out bearish on a recent IPO with which they were associated. The industry can try to set up the biggest "ethical walls" it wants, but you can guarantee that big new IPOs are getting an initial bullish rating from underwriting firms.
Details
However, Raymond James certainly took this to another level with a price target on SpaceX light-years above any other Wall Street firm. Analyst Brian Gesuale centered his bullish thesis on SpaceX becoming "the foundational platform for the next generation of industrial capacity" across various industries.
Source
Originally published at www.fool.com.