Sell-side analyst buy ratings may overstate conviction and provide limited validation for SpaceX's valuation given structural bias toward positive recommendations
Too little corroboration in the last 3 days to call a trend (2 articles). Watching for it to gain traction.
"Meanwhile, Wall Street's optimism has, so far, not been matched by SPCX shares' actual stock market performance. After an initial SpaceX rocketing to its all-time high (ATH) of $225.64 just four days after the initial public offering (IPO), the equity found itself crashing and has, in the last week, generally been gravitating toward its June 12 opening price of $150."
"The analyst calls matter because they give investors a framework for valuing SpaceX as more than a Musk-driven moonshot. However, sell-side analysts tend to be quite bullish on stocks — with the largest names enjoying some of the most positive ratings. Across the 3,000 biggest U.S. companies, buy recommendations account for 63 per cent of all analyst ratings, according to data compiled by Bloomberg."