Argus Initiates Coverage of SpaceX with Hold Rating
Argus Research began coverage of Space Exploration Technologies Ltd (SpaceX) on 26 June 2026, assigning a Hold rating. The analyst, Steve Silver, highlighted that the June 2026 initial public offering raised $85.7 billion and placed the company’s market valuation at more than $1.75 trillion, establishing it as the largest IPO in history. The offering implied a price‑to‑sales multiple of approximately 95 times the projected 2025 revenues.
Silver noted that despite strong top‑line momentum, SpaceX is not yet consistently profitable, describing its operating plan as a blend of a mature infrastructure business and a venture‑style growth investment. Consequently, Argus expects the current valuation multiples to remain elevated for several years before converging toward more typical levels.
Since the IPO, the stock has exhibited pronounced volatility, rising as much as 67 % above the offering price before retreating to trade around 10 % above that price. Argus attributes the continued volatility to a tight share supply, the company’s early inclusion in major equity indices, and the impending lock‑up share expirations slated for the coming months.
While maintaining a Hold stance, Argus left open the possibility of an upgrade, stating that the firm may consider upgrading the stock if it falls sharply on non‑fundamental factors or if revenues and earnings accelerate at a faster‑than‑expected pace.
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