Morningstar industrials equity analyst Nicolas Owens said SpaceX investors will obtain a better margin of safety days or weeks after the company’s IPO [1].

This perspective suggests that the initial excitement surrounding the public offering may create a price bubble, potentially leading to losses for those who buy in during the first hours of trading.

Speaking from CNBC’s ‘Squawk on the Street’ studio in New York, Owens said that the current valuation of the aerospace company is inflated [1]. According to Morningstar, the SpaceX IPO is overvalued by 50% [2].

Owens said that waiting until after the IPO, and the subsequent potential for insider selling, will improve the margin of safety for investors [2]. By avoiding the initial hype, market participants may be able to enter the position at a more sustainable price point.

SpaceX has long been one of the most anticipated companies to go public due to its dominance in satellite launches and the Starlink network. However, the gap between perceived value and fundamental value often widens during high-profile listings.

Owens said that smart investors will wait out the hype and buy later to avoid the risks associated with an overvalued entry [2].

“SpaceX investors will obtain a better margin of safety days or weeks after the company’s IPO”

The warning from Morningstar highlights a common tension in high-growth tech IPOs, where retail enthusiasm often drives prices far above fundamental valuations. If the 50% overvaluation claim holds, the stock could experience a significant correction shortly after listing, making a delayed entry strategy more lucrative than participating in the initial offering.