Wedbush Initiates SpaceX Coverage With 'Outperform' Rating, $190 Target

Wedbush Securities initiated analyst coverage of SpaceX (TSLA) with an "Outperform" rating and a price target of $190 per share, according to a report from Investor's Business Daily. The stock fell more than 7% on Wednesday.

Rating Change

This is the first coverage from Wedbush for SpaceX, with analysts assigning an Outperform rating, equivalent to a Buy. The $190 price target represents a significant premium over the previous closing price.

Analyst Rationale

Wedbush analysts believe SpaceX holds strong competitive advantages in the commercial space sector, including reusable rocket technology and the Starlink satellite network. They expect growth in launch contracts and satellite internet services to drive revenue and profits.

Context

The coverage comes amid growing investor interest in the space sector. While no other analyst ratings have been issued yet, the stock has experienced notable volatility, declining over 7% on Wednesday.

Conclusion

The Wedbush rating reflects optimism about SpaceX's prospects, but investors should consider sector risks such as regulatory challenges and intense competition.