New Street Research Initiates SpaceX with $165 Price Target

New Street Research analyst Pierre Ferragu initiated coverage on SpaceX with a price target of $165.00.

“In order to formulate our initial view on where we see the SpaceX stock trading in a year from now, we look at it from 3 different angles.

First, we consider the sum-of-the-part perspective, using a DCF for Starlink and looking at how xAI’s value is enhanced by the acquisition of Cursor, the combination with the highly cash-generating telecom business, and the prospect of direct access to orbital compute.

Third party launch is only a small moving part in this picture.

Second, we look at where we see SpaceX landing in 2030, in terms of revenues and growth prospect, and look at relevant compares for Earnings and Sales multiples.

Lastly, we cross-check our results with the longerterm sizing of the space opportunity.

Overall we conclude with a 12-month target price of $165, representing 22% upside on the proposed IPO price, and corresponding to a $2.3tn equity value, post the Cursor acquisition.”

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