SpaceX (SPCX) joins the Nasdaq-100 Index on Tuesday as major brokerages including Wells Fargo, Morgan Stanley, and Goldman Sachs initiated coverage with bullish ratings. The analysts highlighted the company's growth prospects across space transportation, satellite communications, and artificial intelligence. The index entry follows Nasdaq's Fast Entry rule introduced in May, with JPMorgan estimating the inclusion could drive up to $4.3 billion in inflows into the stock. SPCX shares were down about 0.5% in premarket trading on Tuesday, having slipped 0.3% through Monday's close despite a strong start following its June 12 debut.
Wells Fargo Assigns Overweight Rating with $230 Price Target
Wells Fargo started coverage with an 'Overweight' rating and a $230 price target, according to The Fly. This represents a more than 43% potential upside from Monday's closing price. Analyst Ken Gawrelski said Starship is expected to strengthen the company's Starlink satellite internet business in the near term, while over the longer term it could support cost-efficient AI infrastructure.
The firm said its financial forecasts through 2028 depend mainly on SpaceX's ability to execute its plans rather than develop new technologies. Beyond 2029, the analyst sees "multiple call options." Wells Fargo expects Starship to strengthen the company's Starlink satellite internet business in the near term.
Morgan Stanley and Goldman Sachs Initiate Bullish Coverage
Morgan Stanley initiated coverage with an 'Overweight' rating and a $300 price target, implying about 87% upside from its last closing price. According to investing.com, the firm cited four key long-term growth drivers, including the company's ability to monetize enterprise AI, expand Starlink's satellite network, and lower launch costs through Starship. Morgan Stanley also highlighted that SpaceX's vertically integrated manufacturing strategy, including Terafab and Solarfab, will reduce costs in the long run.
Goldman Sachs initiated coverage with a 'Buy' rating and a price target of $205. The brokerage said SpaceX is well positioned to benefit from expanding opportunities in space, satellite connectivity, and AI, with each vertical expected to become a multi-trillion-dollar industry.
SpaceX Enters Nasdaq-100 Index Under Fast Entry Rule
On Tuesday, SpaceX will officially join the Nasdaq 100 Index under Nasdaq's "Fast Entry" rule introduced in May. According to a Reuters report, JPMorgan estimates the index inclusion could drive up to $4.3 billion in inflows into the stock.
Retail Sentiment Remains Mixed on Stocktwits
Retail sentiment on Stocktwits remained in the 'bearish' zone over the past 24 hours. Chatter was mixed, with one user stating, "buy, hold and come back in five years." Another user expects the stock to fall between $135 and $140.
FAQ
What did SpaceX do on Tuesday regarding the Nasdaq-100 Index?
SpaceX officially joined the Nasdaq-100 Index on Tuesday under Nasdaq's "Fast Entry" rule introduced in May. JPMorgan estimates the index inclusion could drive up to $4.3 billion in inflows into the stock.
What price targets did analysts assign to SPCX stocks?
Wells Fargo assigned a $230 price target with an 'Overweight' rating, representing more than 43% potential upside from Monday's closing price. Morgan Stanley initiated coverage with a $300 price target and 'Overweight' rating, implying about 87% upside. Goldman Sachs initiated coverage with a 'Buy' rating and a $205 price target.
Why are analysts bullish on SpaceX's growth prospects?
Analysts highlighted SpaceX's growth prospects across space transportation, satellite communications, and artificial intelligence. Wells Fargo said its financial forecasts through 2028 depend mainly on SpaceX's ability to execute its plans rather than develop new technologies. Goldman Sachs said each vertical is expected to become a multi-trillion-dollar industry.
