Key Takeaways
- SpaceX (SPCX) received an Outperform rating from Evercore ISI with a price target of $230
- The stock is currently priced at $139.14, hovering approximately 2% over its 52-week bottom of $136.78
- Evercore forecasts revenue and EBITDA expansion of 106% and 157% respectively by 2028
- The 13th Starship test flight is planned for Thursday evening at 6:45 p.m. EDT from the Starbase facility in Texas
- Wall Street consensus rates SPCX as Strong Buy, with analysts setting an average target of $245.32
On Monday, Evercore ISI launched research coverage of SpaceX (SPCX), assigning an Outperform rating alongside a $230 price objective, describing the aerospace venture as “an extraordinary company on a real path to reshaping the future of humanity.”
At the time of the coverage launch, SPCX shares were changing hands at $139.14, positioned merely 2% higher than the 52-week trough of $136.78. The firm’s valuation target suggests potential appreciation of approximately 65%.
Space Exploration Technologies Corp., SPCX
This coverage debut arrives as SpaceX gears up for Starship’s 13th experimental mission, slated for no sooner than Thursday evening at 6:45 p.m. EDT, launching from the company’s Starbase operations in Texas.
Evercore’s Kutgun Maral penned the comprehensive 150-page research document, featuring more than 130 data exhibits and incorporating insights from specialists across cable, telecom, communications infrastructure, hardware, internet, and semiconductor domains.
Maral’s central investment premise emphasizes how SpaceX’s various operations create synergies. Reusability in rocket technology reduces launch expenses, accelerating Starlink network deployment. Starlink’s revenue streams then finance ventures in ground-based computing infrastructure, cellular connectivity solutions, and prospective space-based data facilities.
Evercore’s Financial Projections
The investment bank anticipates SpaceX’s revenue and EBITDA will grow at compound rates of 106% and 157% respectively leading up to 2028, while operating margins are expected to climb from 35% to 69%. During the trailing twelve-month period, SpaceX generated $19.3 billion in revenue and $3.95 billion in EBITDA.
Wall Street analysts are modeling 95% revenue expansion for the current fiscal year. The research examines five distinct business divisions: rocket launch operations, Starlink internet services, cellular network initiatives, ground computing solutions, and space-based computing infrastructure.
Maral acknowledged significant execution risks facing the company. Starship hasn’t successfully deployed an operational payload yet. Starlink’s cellular offering requires meaningful market adoption. Space-based computing infrastructure might not undergo testing until 2029 or beyond.
Starship Flight 13: Critical Milestone Approaching
The forthcoming Starship Flight 13 represents the second evaluation of the upgraded Version 3 configuration, which offers enhanced size and capability compared to predecessor versions.
The most recent flight in May encountered significant challenges. The Super Heavy booster experienced an unplanned attitude change during stage separation, sustained thermal damage, and multiple engines failed to reignite, resulting in the complete loss of the booster.
The Federal Aviation Administration has authorized SpaceX to move forward following completion of its investigation into the anomaly.
Stifel maintains a Buy recommendation on SPCX with a $190 valuation. Raymond James holds a Strong Buy stance with an $800 price objective. Bernstein SocGen Group assigns an Outperform rating with a $239 target.
The overall Wall Street sentiment on SPCX registers as Strong Buy, derived from 23 Buy ratings, four Hold recommendations, and one Sell rating issued over the last three months. The mean price target among analysts sits at $245.32, suggesting approximately 72% appreciation potential from present trading levels.
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