SpaceX's True Earnings Power Seen as Underappreciated

Dow Jones00:23

1223 ET - The market is only just getting wise to the true scale and pace of SpaceX's infrastructure buildout, Stifel analysts write in a note. They add that their own conservative view toward CEO Elon Musk's "aspirational targets" has been too doubtful. "So far, that conservatism has been completely unjustified," they write. It appears that fundamentals are tracking more than a year ahead of SpaceX's initial financial targets, prompting potential estimate revisions at a "completely unprecedented" scale, the analysts write. "We think the market will remain skeptical of the steepness of the ramp, but the direction of travel is hard to dispute," they write. "We'd recommend acquiring shares today, while the market still struggles to size the true earnings power of this new industrial and technology titan."

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