Susquehanna analyst Charles Minervino has initiated coverage on SpaceX with a Neutral rating and established a price target of $170. The rating reflects a balanced view of the company's current position and future prospects within the market.

Coverage Details

The initiation provides investors with a benchmark for evaluating the performance of SpaceX shares. The Neutral rating suggests that the stock is expected to perform in line with the broader market averages over the near term.

Price Target

The assigned price target of $170 serves as a reference point for the stock's valuation. This figure indicates the level at which Susquehanna believes the shares could trade given current market conditions and company fundamentals.

SpaceX shares have fallen approximately 29% from their high above $222 last week, prompting retail investors to scout for entry points. Nic Puckrin, analyst and founder of Coin Bureau, advises against viewing this decline as a second-chance buying opportunity. He argues that the drop reflects structural factors rather than value, noting that exaggerated moves are common for stocks with a small public float.

Lock-Up Period Risks

Puckrin highlights that the upcoming Q2 earnings report later this summer will trigger the expiration of the first 20% tranche of major holder lock-ups. This event introduces a steady flow of potential sellers as early investors often take profits once restrictions lift. The analyst cautions that this selling pressure could lead to further downside in the short term.

"What matters more is not SpaceX’s price relative to its day one open, but what comes next. And what comes next is its Q2 earnings report later this summer, at which point the first 20% tranche of major holder lock-ups will expire. That means potentially more selling pressure entering the market … further downside is entirely plausible in the short term," Puckrin said.

Supply Dynamics and Index Inclusion

While the recent sell-off reduces the likelihood of an additional 10% early unlock on the Q2 earnings date, Puckrin notes that hype could still drive retail FOMO. This sentiment can push prices quickly in the absence of liquidity. Furthermore, index inclusion means many investors will gain exposure to SpaceX automatically, making it crucial to consider the stock's price before making an active allocation.

"For retail investors, it’s therefore worth remembering that FOMO isn’t a solid investment strategy. Often, it pays to sit out the volatility until there is a clearer trajectory and the hype has died down," Puckrin advises.

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