DZ Bank Starts SpaceX Coverage, Sell, $100

DZ Bank initiated coverage on SpaceX with a Sell rating and a $100 price target, arguing that the company’s vast capital needs to fund its AI, Starlink, and space ambitions have driven the valuation too far ahead of near-term execution. The bearish case centers on projected capex near $800 billion through year-end, heavy AI infrastructure spending, and a looming cash burn despite strong revenue growth; the firm notes a 25% downside from current levels as a key risk. Yet the broader Street remains mostly bullish, with about three-quarters of analysts rating SpaceX as a Buy and a consensus target around $220, highlighting a stark valuation gap. SpaceX has seen volatile trading around its IPO price, with 319 million insider shares unlocked and the stock trading roughly in the low $130s to mid-$130s in recent sessions. Investors also weigh management’s timeline shifts, such as delayed Starship upper-stage recovery plans, which add to near-term uncertainty about return on capital from the company’s multi-segment push. Despite the caveats, SpaceX’s quarterly revenue rose sharply to about $7.8 billion, while the AI and connectivity segments continue to expand, leaving the long-term opportunity tantalizing but the path to profitability a central debate for investors.