SpaceX Investors Could Be in for a Rude Awakening, According to 1 Top Wall Street Analyst
Written by Keith Speights for The Motley Fool -> Morningstar performed a rigorous analysis that concluded that SpaceX is "significantly overvalued." Factors that could cause the stock to fall sharply include upcoming dilution and governance issues. SpaceX's share price is now
Morningstar performed a rigorous analysis that concluded that SpaceX is "significantly overvalued."
Factors that could cause the stock to fall sharply include upcoming dilution and governance issues.
SpaceX's share price is now well above even the most bullish Wall Street analysts' price targets.
Many investors have enjoyed a bona fide rocket ride over the last few days. I'm referring, of course, to the historic IPO for Space Exploration Technologies (NASDAQ: SPCX) (which is better known as SpaceX). Not only did SpaceX set a record for the biggest IPO market cap ever, but its shares have also continued to rise sharply following the IPO.
Cryptocurrency investors use the phrase "to the moon" to describe cryptocurrencies that have or are expected to soar in value. This expression seems especially fitting for SpaceX. However, not everyone thinks the ride will end well. SpaceX investors could be in for a rude awakening, according to one top Wall Street analyst.
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Morningstar (NASDAQ: MORN) , led by analyst Nicolas Owens, performed a rigorous analysis of SpaceX's financials and growth prospects. The firm's conclusion: the stock is "significantly overvalued." Morningstar estimated that SpaceX is actually worth $63 per share. That's roughly 70% below the space technology company's share price as of midday trading on June 16, 2026.
Are Owens and his team just "negative Nellies" when it comes to SpaceX? Not really. In a deep dive report earlier this month, they argued, "Our valuation is the result of mathematics more than skepticism." Morningstar constructed probability-weighted discounted cash flow (DCF) models for SpaceX based on three scenarios.
