Susquehanna Initiates SpaceX at Neutral, $170 PT
Susquehanna analyst Charles Minervino initiates coverage on SpaceX (NASDAQ: SPCX) with a Neutral rating and a price target of $170.00.
“We are initiating coverage of Space Exploration Technologies Corporation (SPCX) with a Neutral rating and price target of $170.
SpaceX designs, builds, launches, and operates the integrated hardware and software infrastructure used by some of the most technologically advanced applications across space, connectivity, and artificial intelligence.
Over the 2025-2028 timeframe, we are forecasting SPCX to grow revenue at an 81% CAGR and adjusted EBITDA at a 76% CAGR.
In our view, some of SPCX’s key competitive advantages include: (1) a dominant position in rocket launch supported by its reusable booster technology, enabling increased launch cadence and lower costs.
Starship, its next generation rocket, provides an opportunity to widen its lead even further; (2) Starlink, the high-growth global connectivity business spanning consumer, enterprise, government, and mobile.
Underpinned by the company’s launch capabilities, we believe Starlink has a significant growth runway remaining, including the nascent direct-to cell business; (3) an early-stage, vertically-integrated artificial intelligence offering (spanning infrastructure, media, advertising, and enterprise), with a demonstrated ability to build AI infrastructure at scale; and (4) a proven operator in Elon Musk that should steer the company toward new growth vectors.
That said, we believe the current valuation requires premium multiples on very aggressive revenue and EBITDA growth assumptions.
With some of the markets that SPCX operates in being relatively unproven, we believe a wide range of outcomes exist.
This introduces quite a bit of risk into future expectations and therefore would recommend waiting for a better entry point on the stock.”
This research note is reproduced verbatim from the issuing firm. Price Target never edits, paraphrases or alters analysts’ words — we only republish them in one place.
This research note is reproduced verbatim from the issuing firm. Price Target never edits, paraphrases or alters analysts’ words — we only republish them in one place.
