Investing.com -- Argus initiated coverage of Space Exploration Technologies with a Hold rating in a note on Friday, arguing that SpaceX's record-breaking IPO valuation will take years to grow into, despite the company's strong top-line momentum.

SpaceX completed its initial public offering in June 2026, raising total proceeds of $85.7 billion at a valuation above $1.75 trillion, making it the largest IPO in history.

Analyst Steve Silver told investors that the offering implied a price-to-sales multiple of approximately 95 times 2025 revenues.

However, he flagged the valuation as a key concern, noting that SpaceX "is not yet consistently profitable, as its operating plan combines characteristics of both a mature infrastructure business and a venture-style growth investment."

The bank concluded that "it will likely be years before SPCX's multiples land at more normal levels."

Since the IPO, the shares have been volatile, rising as much as 67% above the offering price before pulling back to trade around 10% above it.

Argus expects volatility to persist "given a tight share supply and its early inclusion in many major equity indices," alongside the prospect of lockup share expirations in the coming months.

Despite the cautious initiation, Argus left the door open to an upgrade, saying it "may look to upgrade the stock if it falls sharply on nonfundamental factors or if revenues and earnings accelerate at a faster-than-expected pace."