Oppenheimer Begins Coverage of SpaceX with Bullish Recommendation

SpaceX IPO: Oppenheimer Initiates Coverage with "Outperform" Rating

Oppenheimer has become the first global brokerage to start coverage of SpaceX, ahead of the rocket and AI company's highly anticipated $75 billion market debut on Friday. In a note published on Thursday, Oppenheimer analyst Timothy Horan issued an "outperform" rating and set a price target of $190, implying an upside of nearly 41% to SpaceX's IPO price of $135.

According to Oppenheimer, SpaceX is expected to notch a market capitalization of about $2.5 trillion in the next 12-18 months, driven by the company's vertically integrated AI capabilities and its potential to become a significant contributor to the market. The brokerage believes that SpaceX's Starlink satellite internet service will be the main cash generator, and its AI business, including xAI, will become the largest contributor over time.