The most bullish SpaceX call projects the stock to rise 430% from current levels
SpaceX, the Elon Musk-owned enterprise, which made its debut on the Nasdaq on Tuesday, July 7, received a flurry of bullish initiations as the silent period of managers who ran the IPO came to an end. The one that stood out was from Raymond James.
The brokerage initiated coverage on SpaceX with a “strong buy” recommendation and a price target of $800. This is not only the highest among all analysts who have coverage on the recently listed stock, but also projects an upside potential of 430% from current levels.
Despite the multiple bullish initiations, shares of SpaceX fell 6.5% on Tuesday to close at $149, tumbling back towards their IPO price of $135, having cooled off from their post-listing high of $225.
In case the stock hits that level, it would take its market capitalization to $10.5 trillion, that is more than double of Nvidia’s current market capitalization of $4.7 trillion, which makes it the most valuable stock globally.
As a result of the fall from its post-listing high, SpaceX’s market capitalization is now below the mark of $2 trillion.
In its bullish note, Raymond James said that it is seeing SpaceX as one of the defining industrial infrastructure companies of the 21st century, adding that SpaceX is now building the foundational platform for the next generation of industrial capacity, just as railroads, electric grids and internet reshaped the prior economic eras.
The brokerage now projects SpaceX’s revenue to soar to $5.2 trillion by 2035, from $19 billion that it reported last year. It will be led by the AI segment, currently a smaller part of the business, compared to the rocket or connectivity segments. AI will also become the biggest revenue contributor to SpaceX by 2027 and by 2035, will represent 94% of the company’s overall topline, the note added further.
However, the bullish forecasts also come with their fair share of risks. Raymond James believes that in case SpaceX experiences launch failures, the stock could even fall to as low as $125, which is below its issue price of $135. Launch failures would “raise concerns about the pace of orbital AI, Starlink Mobile, and Starship-enabled infrastructure optionality,” the note said.
SpaceX is now tracked by 35 analysts on Wall Street, of which 29 continue to maintain a “buy” rating on the stock. The average analyst price target is just above its post-listing high, at $236.45, which implies an upside of 56% from current levels.