Wall Street Thinks SpaceX Is a Buy. Here Are 2 Reasons I'm Not So Sure.
SpaceX is currently valued at roughly $2 trillion.
Overview
I love Space Exploration Technologies (NASDAQ: SPCX) as a business. The company has already proven an exceptional ability to pioneer new markets, such as low Earth orbit satellite internet and cheap, reusable rockets. Few companies in history have accelerated space travel and space-based ventures as quickly as SpaceX.
As an investment opportunity, however, I have some concerns.
Details
Wall Street seemingly disagrees with me. More than 25 analysts currently have a buy rating on the stock, with a consensus 12-month price target of $232. That implies more than 50% near-term upside potential. Several analysts are expecting more than 100% upside over the coming year, with one expert believing shares should be worth closer to $800 -- a massive premium to today's valuation of around $150.
Source
Originally published at www.fool.com.