RBC Capital Affirms Outperform on SpaceX, $225 Price Target

RBC Capital analyst Ken Herbert reiterated an Outperform rating and $225 price target on SpaceX (NASDAQ: SPCX).

“We are maintaining our Outperform rating and our price target of $225.

We believe the beat- and-raise cadence is positive for sentiment on the stock, with the ambitious business updates positive for LT sentiment as well.

We do not believe the current valuation fully reflects the stock’s intrinsic value potential and remain as buyers of the SPCX at this level.

We can appreciate the nuanced nature of the moving pieces of SPCX’s business model, but believe that over time, investors will become more comfortable with the story.

Our $225 price target is based on the following sum-of-the-parts valuation below. We believe the company still has a lot to prove, and we are maintaining our price target accordingly.

While we are increasing estimates rather substantially, we now apply lower multiples to our SOTP.

We believe investors are increasingly giving the company credit for its ambitions, but are still viewing the company as a bit of a show-me story.”

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