Morningstar thinks SpaceX stock is wildly overvalued — but says there are 2 ways the company can change its mind
Getty Images SpaceX closed Tuesday at about $200, well above Morningstar's fair value estimate of $63. Shares have defied doubters and stayed strong since the company's historic IPO last week. A Morningstar aerospace and defense analyst details two things that could get him to raise his estimate. Leading up to SpaceX's IPO last Friday, Morningstar analysts said the company's fair value was about 50% lower than its valuation. After its first three trading days, which saw SpaceX soar 49% to $201.68 a share , that gap has grown to nearly 70%, with Morningstar pegging SpaceX's fair value at $63 a share. That doesn't necessarily mean Morningstar is calling for the stock to drop. On the contrary, Nicolas Owens, its aerospace and defense analyst, thinks the stock could continue its surge in the months ahead purely thanks to market economics and investor sentiment. "The investor enthusiasm could last indefinitely, and I think if you look at the market cap of Tesl...
