SPCX Stock Set To Open In The Red In Second Week Of Trading – KeyBanc Sees ‘Significant Disruptive Growth Drivers’

SpaceX shares are on track to decline for a third straight session, having already shed more than 8% of their value through Thursday’s close.

• KeyBanc initiated coverage of SpaceX with a ‘Sector Weight’ rating and no price target.
• The brokerage sees Starlink as a key driver of profitable growth and AI as a major long-term upside catalyst.
• According to a Bloomberg report, SpaceX is preparing a bond offering of at least $20 billion.

Space Exploration Technologies Corp. (SPCX) looks set to extend its pullback from last week, with shares down 5% in premarket trading after an 8% decline over the previous two sessions. 

The stock is on track to commence its second week of trading in the red. Still, SPCX shares are up 37% since its market debut on June 12.

Keybanc Sees Starlink As Key Growth Driver

On Monday, KeyBanc initiated coverage of SpaceX with a ‘Sector Weight’ rating and no price target. According to TheFly, the brokerage said the company is well-positioned to maintain its leadership in space launch and related markets for the foreseeable future.

The firm highlighted Starlink as a key driver of profitable growth and views artificial intelligence as a major long-term upside catalyst. While KeyBanc believes SpaceX “possesses significant disruptive growth avenues,” it noted that much of that potential is already reflected in the stock’s valuation, resulting in a balanced risk-reward profile.

Meanwhile, MSCI assigned SpaceX its lowest possible CCC ESG rating, citing insider control, rocket-launch emissions, and Starlink space-debris risks.

SPCX stock has a consensus 12-month price target of $187.8, according to Koyfin data. Six of the seven analysts covering the stock have rated it a ‘Buy’ and one ‘Sell.’

SPCX’s $20B Bond Sale

SpaceX is reportedly preparing to meet investors to discuss a bond offering of at least $20 billion. The proceeds would be used to refinance a $20 billion bridge loan the company took on earlier this year following its acquisition of xAI, Elon Musk’s artificial intelligence startup.

According to a Bloomberg report, Bank of America, Citigroup, JPMorgan Chase, Goldman Sachs, and Morgan Stanley are expected to lead the deal.’

What’s Retail’s Verdict?

Retail sentiment surrounding SPCX on Stocktwits trended in the ‘bullish’ zone over the past 24 hours, amid ‘extremely high’ message volumes.

One user expects the stock to bounce off $150 before heading lower.

View this Stocktwits post

However, another user believes that the stock could fall to $95 if it breaks below its IPO price.

View this Stocktwits post

Get updates to this developing story directly on Stocktwits.<