Key Takeaways
- Shares of SpaceX advanced approximately 1% on Tuesday, bouncing back from previous session losses to trade around $146.65.
- TD Cowen’s John Blackledge initiated coverage with a Buy recommendation and established a $200 price objective, representing roughly 40% upside potential.
- The Starship vehicle achieved orbital altitude for the first time on its 14th test mission, successfully releasing 26 advanced Starlink satellites.
- Approximately 76% of Wall Street analysts tracking SpaceX maintain Buy recommendations, with a consensus target price around $223.
- Wall Street believes AI compute leasing operations, serving clients such as Google and Anthropic, will become the company’s most rapidly expanding revenue source.
Shares of SpaceX gained approximately 1% during Tuesday’s premarket session, reaching $146.65 as the stock recovered ground lost in the prior trading day. The upward movement coincided with renewed optimism from Wall Street analysts.
Space Exploration Technologies Corp., SPCX
TD Cowen equity analyst John Blackledge launched coverage on SpaceX Monday with a Buy recommendation. His price objective of $200 represents approximately 40% appreciation potential from current trading levels.
In his initiation report, Blackledge emphasized SpaceX’s terrestrial AI computing operations as a primary catalyst for his optimistic stance. The company currently leases computational infrastructure to organizations including Anthropic and Alphabet, generating billions in monthly revenue.
The analyst also highlighted Starship’s future prospects, noting that the fully reusable launch system could significantly enhance both the AI computing division and Starlink, the company’s satellite broadband network.
Starship Achieves Orbital Milestone
Monday’s 14th test flight represented a breakthrough moment as Starship successfully reached orbital altitude for the first time. During the mission, the vehicle deployed 26 enhanced, next-generation Starlink satellites into space.
RBC’s Ken Herbert characterized the successful flight as a significant achievement for SpaceX’s launch operations in research published Monday. William Blair’s Louie DiPalma shared similar sentiments, connecting Starship’s capabilities directly to the company’s computational infrastructure ambitions.
DiPalma highlighted Elon Musk’s recent statement that SpaceX plans to deploy one gigawatt of computing capacity by 2028 for substantially less than $65 billion. This projection is particularly noteworthy considering that constructing an equivalent gigawatt of AI computing infrastructure on Earth currently requires $40 billion to $50 billion.
Traditional ground-based facilities also face recurring operational expenses that space-based computing would eliminate, particularly electricity costs from utility providers. SpaceX’s cost structure should improve progressively as Starship launch frequency accelerates.
Wall Street Sentiment Strengthens
Based on FactSet data, approximately 76% of analysts monitoring SpaceX maintain Buy ratings on the stock. This figure exceeds the standard 55% to 60% Buy rating percentage typical among S&P 500 constituents.
SpaceX now draws attention from over 40 analysts representing aerospace, technology, and telecommunications sectors. The consensus price target among this group stands near $223.
Blackledge’s coverage universe typically includes major technology companies such as Amazon and Meta Platforms. Meanwhile, Herbert and DiPalma concentrate their research on aerospace and defense industries.
TD Cowen forecasts that AI compute leasing operations will comprise the majority of SpaceX’s total revenue by Q1 2027. The investment firm anticipates expanding terrestrial gigawatt-scale capacity will drive this transition.
SpaceX recorded $23 billion in trailing twelve-month revenue. Analyst projections call for 144% revenue expansion in fiscal year 2026.
Additional firms have issued positive assessments recently. Clear Street maintained its Buy rating with a $217 price objective following Starship’s orbital mission and satellite deployment success.
Bernstein SocGen Group sustained its Outperform rating, estimating that Starlink’s residential broadband operations could generate approximately $64 billion in revenue by 2031. The firm referenced Starlink’s customer base, which has achieved year-over-year doubling for four consecutive years.
Mizuho joined the chorus Monday, confirming its Outperform rating alongside a $200 price target. The firm identified SpaceX’s capacity to maintain premium market pricing as a critical element supporting its recommendation.
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