Wall Street Thinks SpaceX Stock Has 50% Upside. Here's Why I Don't Care.
Wall Street has a $227.66 price target on SpaceX shares.
Overview
Even after a post-IPO lull, SpaceX (NASDAQ: SPCX) remains one of the market's most exciting stories. Despite its $2 trillion market cap, SpaceX shares trade at nearly 100 times sales. Sales growth did hit 92% year over year last quarter. But the space company clearly has a long way to go before it can fully justify its rich valuation.
Wall Street remains unfazed. The consensus price target for SpaceX stock is $227.66, implying more than 50% in upside over the next 12 months. Around 26 analysts have a buy rating on the stock, with six issuing a hold recommendation. Only three analysts believe SpaceX shares are a sell.
Details
SpaceX investors are likely pleased that Wall Street is so bullish. But here's the thing: SpaceX's valuation won't be justified over a matter of months or even years. It could take a decade or more for SpaceX to fully execute on its long-term growth vision.
Source
Originally published at www.fool.com.