SpaceX and the myth of independent Wall St research

> The banks that underwrote SpaceX’s blockbuster flotation last month have finally published their research on Elon Musk’s company after the expiry of the regulatory “quiet period” on advisers to the deal. > Every one recommends buying the stock. Goldman Sachs, which took the prime lead-left slot on the list of advisers in documents for the initial public offering, put a $205 price target on the shares. Morgan Stanley went to $300. Raymond James was even more hopeful, putting out an $800 price target, implying a valuation of more than $10tn.

> Each bank justifies the numbers differently, but the conclusion is invariably bullish. Deutsche Bank, for example, hailed SpaceX as “the apex of civilizational ambition, oftentimes expressed in steel and fire, bending the arc of history”. The current share price of about $125 — down 44 per cent from the post-IPO peak and 6 per cent below the offer price...

SMH