Big Wall Street banks began covering SpaceX stock on Tuesday, and their bullishness on the rocket company has reached literary levels. Analysts at Deutsche Bank said Tuesday that SpaceX represents “the culmination of a civilizational ambition that bends the arc of history, often expressed in iron and fire.” Analysts at Bank of America said the owners of Starlink, a low-orbit satellite for high-speed broadband internet, are “paving a superhighway to the stars.” Raymond James described SpaceX’s new reusable rocket, Starship, which is still in the testing phase, as “the defining industrial innovation of our generation.” Because many of the major banks were also underwriters for SpaceX’s June 12 initial public offering, equity research departments were restricted from releasing reports early to avoid artificially inflating the stock’s price. The IPO’s lead underwriters were Goldman Sachs, Morgan Stanley, Bank of America and JPMorgan, with more than a dozen other companies playing smaller roles. Almost all of the studies released Tuesday were positive, but Moffett Nathanson was the only one who thought SpaceX would lose value over the next 12 months. SpaceX closed Monday at $160.42 per share, about the same level as its closing price on the first day of trading after its $135 IPO, giving it a market capitalization of $2.1 trillion. SPCX 5D Mountain SPCX Last 5 Days Raymond James Rating: “Strong Buy 1” Target Price: $800 “Our thesis premise is that Starship will succeed in industrializing orbital transportation, transforming orbital launches from a bespoke aerospace capability to a transportation network defined by commercial aviation-like flight cadences and continually declining unit costs.” Deutsche Bank Rating: “Buy” Target Price: $255 “Having the ability to reliably launch rockets at a high pace and at low cost is core to unlocking the broader space economy. SpaceX achieved some of that with the Falcon 9, which launched 165 times into orbit last year, accounting for more than 90% of all lifted mass worldwide. Looking to the future, Starship is designed to lift 100 tons into orbit in just a few hundred flights (an approximately 5x improvement) at $100 per kg, or even less. ” Goldman Sachs Rating: “Buy” Target Price: $205 “The Company is built on the principles of vertical integration, network effects, and economies of scale, leveraging its leading position and structural advantages in space launch capabilities to expand adjacent/complementary businesses.The Company currently operates three distinct (but interconnected) business segments: (1) Space, (2) Connectivity, and (3) Artificial Intelligence (“AI”). In addition to integration, SpaceX also maintains a vertical integration strategy within each business segment. ” JP Morgan rating: “Overweight” Price target: $225 “Launch is a key enabler and differentiator, with approximately 670 orbital launches, over 99% success rate, and over 80% of total mass in orbit since 2023. Starship delivers a 10x cost improvement and up to 4x payload compared to Falcon 9, and should enable the company to pursue entirely new markets, with connectivity driving current financials via Starlink, the largest LEO constellation. (9,600+ satellites, 12 million+ active customers, 164 markets). Broadband subscribers are expected to grow from 9 million in 2025 to more than 95 million in 2030. Importantly, AI is expected to be a long-term driver as SpaceX is modeled to increase ground computing by up to eight times to 8GW by the end of 2028 and pursue orbital computing up to 75GW. By the end of 2031. ” Cantor Fitzgerald Rating: “Overweight” Price Target: $246 “We believe the investor debate is anchored to near-term valuation multiples, which is off-center. Global infrastructure companies are dictating the cost structure of new markets rather than competing within existing markets. In the near term, we believe Colossus’ hosted computing, Starlink Broadband, and Launch Services will provide a durable and increasingly profitable revenue base and reduce entry point risk.” Stifel Financial Rating: Buy. Price Target: $190 “AI is the moving variable — compute infrastructure is on the floor, owned intelligence is on the upswing. AI infrastructure TAM is the single largest at $2.4 billion, and SpaceX’s ownership is currently less than 2%. SpaceX is already showing momentum in ground data centers, with up to 1.4 GW under Anthropic and Google’s lease agreement The more important benefit is to move the building of AI into the system.” SpaceX’s stated goal is to launch 100 gigawatts of computing into space every year. ” Wells Fargo rating: “Overweight” Price target: $230 “The connectivity segment (Starlink) continues to be a key driver of value, contributing 61% of total revenue and reporting $7.2 billion in EBITDA in 2025. With a subscriber base that has doubled year-over-year to 10.3 million users, Starlink has established a formidable moat in both the consumer and enterprise markets due to its first-mover advantage. The segment will enter the next technology phase and enter the next technology phase.” Starship Commercialization is pending and will be upgraded to Starlink V3 satellites. This upgrade is expected to increase downlink capacity per launch by 20x compared to Falcon 9. ” Moffett Nathanson Rating: “Neutral” Price Target: $131 “SpaceX’s valuation of its roughly $30 trillion total addressable market (TAM) is ridiculous. The same goes for its predictions for mobility, which appears to be a niche market for us. Founder and CEO Elon Musk has called for computing to be put into orbit at a rate of 100 gigawatts per year.” By the end of 2029, the capacity of the world’s currently operating data centers will be exceeded, and there will not be sufficient material input within three and a half years. There are simply no reliable financial models to back up the roughly $2 trillion valuation as of this writing. ”
