Oppenheimer's target price of USD190 vs Morningstar USD 63 are 2 extreme polar opposites.
Oppenheimer is pricing SpaceX as an un-bypassable space monopoly & has a trailing 133x price to sales multiple. It assumes that deep space exploration, Mars colony infrastructure & rocket travel will perfectly monetise on a clean timeline, completely ignoring the huge USD 4.94 billion net loss last year.
In contrast Morningstar has priced SpaceX as a capital intensive utility with a 33x trailing multiple.
I believe Morningstar's target price is more realistic. Yet investing in SpaceX is taking a leap of faith into the future with no certainty that it will succeed in its endeavours.
Ultimately it comes down to each individual's risk appetite.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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