SpaceX is ripping higher after strong earnings. Analysts see more gains ahead
Space Exploration Technologies is rallying after reporting much stronger-than-expected results for the third quarter , and analysts say the stock has more room to run as its artificial intelligence and connectivity businesses expand. The Elon Musk-ledfirm posted revenue of $14.6 billion for the third quarter, topping the LSEG consensus of $12.7 billion. That represents a 161% increase from the year prior. Adjusted earnings were 45 cents per share, easily clearing the 13 cents per share forecast. Shares of SpaceX surged 8% following the release. Analysts pointed to Starlink growth. Consumer subscribers rose by 1.6 million to 13.6 million in the three-month period ended Sept. 30. The company’s AI initiatives are also inspiring more confidence on the Street. Executives at SpaceX said they aim to hit volume production of AI-linked chips in its Terafab collaboration with Tesla and Intel within the next two years. They also pointed to increased adoption of SpaceX’s generative AI chatbot called Grok as well as the activation of several lucrative cloud services agreements tied to their broader AI push. “SPCX is proving the durability of its AI revenue growth and its ability to meet ambitious deployment timelines, moving investor forecasts higher as doubts begin to dissipate,” Barclays analyst Anthony Valentini said Wednesday in a note to clients. Valentini has an overweight rating on the stock. He raised his price target on shares to $300 from $254, implying 103% upside from Tuesday’s close. Here’s what else the Street is saying about SpaceX. JPMorgan: Overweight rating Analyst Doug Anmuth also hiked his price target to $500 from $240, signaling a gain of 238%. “SpaceX’s ambitions are bigger than any company’s we’ve seen —to make life multi-planetary, leverage the Sun to build out AI in space, & build bases on the Moon and cities on other planets. In our view, no other company is as well positioned to go after the combined anticipated TAM of $28T+.” Wells Fargo: Overweight rating The bank raised its price target to $274 from $214, implying upside of 85%. “[We] see industry-leading launch capabilities as a core competitive advantage, enabling significant advantages in launch cadence and costs leveraged across business segments. Starlink and terrestrial compute sales provide early monetization, and Starship unlocks longer-term opportunities in orbital compute, broadband connectivity, and direct-to-consumer mobile.” UBS: Buy UBS increased its price target to $230 from $210, implying a gain of 55%. “SpaceX continues to deliver on high expectations and we see the trend continuing as new compute deals come online in 4Q, Starship progresses towards a ship and booster catch and Grok performance and product enhancements continue. We believe the collection of assets is unique and will create value over time as management executes on each of these goals.” Citi: Buy Citi hiked its price target to $240 from $200, signaling a 62% jump. “We view SPCX as a highly vertically integrated disruptor leveraging unrivaled capabilities in launch to establish dominant positions in Global Connectivity and Super Intelligence. Because the company’s ultimate advantage is rooted in its ability to deliver mass to orbit at greater scale and lower unit cost than any other entity on the planet, if SPCX succeeds in demonstrating key technological and operational milestones in the upcoming, catalyst-rich ~2-3 years without faltering, then we see a path to generating over ~$1 trillion in revenue.” Morgan Stanley: Overweight The bank maintained its $300 price target, which points to more than 100% upside. “At our new 2028 EPS of $9.45 and the post-market price of $160, SPCX would trade at 15.7x P/E, cheaper than major AI comps including Microsoft, Google, and Amazon with 3.2x their median y/y revenue growth rate in FY28.” Bank of America: Buy The bank reiterated its $235 price target. “SpaceX has evolved from a launch company into the foundational enabler of the space economy and the leading provider of space-based applications as a result. SpaceX’s extensive moats on reusable launch and proliferated space applications are in our view laying the foundation for Starship and future applications to drive another paradigm shift in capabilities.” Bernstein: Outperform Bernstein’s $248 price target implies upside of 68% from Tuesday’s close. “Q3 results were positive, although it is the outlook that matters. … An annual revenue run rate of at least $100bn is expected by year-end, but with now an ARR of $500bn-$1,000 expected by end of 2027 – mostly driven by terrestrial compute. The company now expects to be close to 2.5-3GW by the end of 2026. By the end of 2027 capacity is expected to be at least13GW (and possibly a total 23GW). The company said pricing is now tracking above the $30-$50/watt range given by Musk at Q2. Short term compute contracts will remain the focus to take advantage of rising demand.” Goldman Sachs: Buy The bank’s $245 target implies upside of more than 65%. “Demand for compute appears substantially ahead of supply – this theme supports tailwinds around both compute utilizationlevels and overall price per compute in this environment.” HSBC: Hold The bank has a $150 price target, which signals little upside potential. “We note the lack of historical data and guidance. Still, revenues were USD14.6bn, +161% y-o-y, a 14% cons. beat, driven by all three divisions, but mostly by Super Intelligence.”
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