Key Takeaways
- Shares of SpaceX advanced approximately 1% during Tuesday’s premarket session, bouncing from the previous day’s decline to trade around $146.65.
- TD Cowen’s John Blackledge launched coverage with a Buy recommendation and established a $200 price objective, representing roughly 40% upside potential.
- The Starship vehicle achieved orbital status for the first time on its 14th test mission, successfully releasing 26 advanced Starlink satellites.
- Approximately 76% of Wall Street analysts covering the company assign Buy-equivalent ratings, with consensus price targets averaging $223.
- Wall Street expects the AI computing lease business, serving clients like Google and Anthropic, to emerge as the company’s most rapidly expanding revenue source.
Shares of SpaceX edged up approximately 1% in early Tuesday trading to reach $146.65, recovering a portion of losses sustained during the previous session. The uptick followed renewed Wall Street enthusiasm for the aerospace giant.
Space Exploration Technologies Corp., SPCX
On Monday, TD Cowen analyst John Blackledge initiated coverage on SpaceX shares with a Buy recommendation. His price objective of $200 suggests approximately 40% appreciation from current trading levels.
The analyst highlighted the company’s terrestrial AI computing operations as a primary catalyst for his optimistic stance. SpaceX has been leasing computational infrastructure to major technology players, including Anthropic and Alphabet, generating billions in monthly revenue.
Blackledge also emphasized Starship’s long-term prospects, noting that the fully reusable launch system could significantly enhance both the AI computing division and Starlink’s satellite internet operations.
Historic Orbital Achievement for Starship
The Starship vehicle completed its 14th test mission on Monday, achieving orbital altitude for the first time in the program’s history. During the flight, it successfully delivered 26 upgraded, next-generation Starlink satellites into orbit.
In a research note released Monday, RBC analyst Ken Herbert described the successful flight as a significant achievement for SpaceX’s launch operations. William Blair’s Louie DiPalma shared a similar assessment, connecting Starship’s progress directly to the company’s computing infrastructure strategy.
DiPalma referenced recent statements from Elon Musk indicating that SpaceX plans to deploy one gigawatt of computing capacity by 2028 for substantially less than $65 billion. This projection is particularly noteworthy given that constructing an equivalent gigawatt of AI computing infrastructure on Earth currently requires $40 billion to $50 billion in capital expenditure.
Traditional ground-based data facilities also face recurring operational expenses that orbital computing platforms would eliminate, particularly electricity costs from utility providers. As Starship’s launch frequency accelerates, SpaceX’s per-launch expenses are expected to decrease substantially.
Wall Street Consensus Strengthens
According to FactSet data, approximately 76% of analysts monitoring SpaceX maintain Buy-equivalent ratings on the stock. This percentage exceeds the typical 55% to 60% Buy rating concentration observed among S&P 500 constituents.
More than 40 analysts now provide research coverage on SpaceX, representing diverse sectors including aerospace, technology, and telecommunications. The consensus price target stands near $223.
Blackledge’s primary coverage universe typically includes major technology companies such as Amazon and Meta Platforms. Meanwhile, Herbert and DiPalma concentrate their research efforts on aerospace and defense industry participants.
TD Cowen’s financial models indicate that AI compute leasing operations will constitute the majority of SpaceX’s total revenue by the first quarter of 2027. The investment bank anticipates that scaling terrestrial gigawatt capacity will be the primary driver of this transformation.
The company recorded $23 billion in revenue over the trailing twelve-month period. Wall Street analysts are projecting 144% revenue expansion for fiscal year 2026.
Additional investment firms have recently issued optimistic assessments as well. Clear Street maintained its Buy rating and $217 price objective following Monday’s orbital flight and successful satellite deployment.
Bernstein SocGen Group sustained its Outperform rating, forecasting that Starlink’s residential broadband operations could generate approximately $64 billion in annual revenue by 2031. The firm referenced Starlink’s customer base, which has experienced year-over-year doubling for four consecutive years.
Mizuho provided the most recent analysis, confirming its Outperform rating accompanied by a $200 price target on Monday. The firm emphasized SpaceX’s capacity to maintain premium pricing power within its market segments as a critical element supporting its positive recommendation.
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