KeyBanc: SpaceX Stock Not a Buy Yet, Analyst Says

Michael Leshock, Senior Research Analyst at KeyBanc Capital Markets covering Aerospace & Defense, believes SpaceX (SPCX) is not a buy at current levels, advising investors to wait until the company achieves sizable milestones.

Rating Change

No official rating change was issued by KeyBanc, but the analyst indicated the stock is not an attractive buy at present.

Analyst's Rationale

Leshock argues that SpaceX is still in an early growth phase and its current valuation does not fully reflect the risks of achieving its ambitious goals. He added that investors will have a better entry point after tangible milestones such as successful commercial launches or sustained profitability.

Context

SpaceX is a private company traded in secondary markets. It has seen high valuations in recent years due to successes in reusable rockets and Starlink. However, some analysts believe the market may have overpriced the stock before the company proves its ability to generate stable profits.

What to Make of It

The analyst's cautious stance reflects concerns about high valuations in the space sector and serves as a reminder that investing in growth companies requires patience and timing.