SpaceX stock rebounds to near $135 IPO price

The return to the benchmark marks a rebound from rocky post-IPO trading that has seen the stock swing up and down and close as low as $108.27 just days ago.

Last week, the rocket maker reported better-than-expected revenue in its first earnings report since the company made its historic debut on the Nasdaq in June. SpaceX said it generated $7.81 billion in revenue during its second quarter, up from the $6.93 billion expected by analysts.

SpaceX CFO Bret Johnsen also said on the earnings call that the company is on pace to reach $100 billion in annualized recurring revenue by the end of the year, which analysts at Deutsche Bank said Monday is “likely very achievable.”

The analysts said that although SpaceX’s second-quarter run-rate was just $31 billion, they expect the $100 billion target will be driven mainly by contributions from the company’s neocloud business and its acquisition of the artificial intelligence coding company Cursor.

“Given the dependency of out-year forecasts/valuation on successful Starship milestones, we leave our PT unchanged at $200 and plan to adjust our target ratably toward the $900+ long term valuation level we outlined in our initiation as major milestones are hit,” they wrote in a Sunday note.

Analysts at Wolfe Research said that while SpaceX showed “big beats” during the second quarter, investors should still exercise some caution.

“There was a lot to like in SpaceX’s first earnings report but as always we would advise not misunderstanding aspirations of mgmt from most likely outcomes,” the analysts wrote Sunday.