Goldman Sachs Initiates SpaceX at Buy, $205 PT

Goldman Sachs analyst Eric Sheridan initiates coverage on SpaceX (NASDAQ: SPCX) with a Buy rating and a price target of $205.

“We initiate coverage of SpaceX (ticker: SPCX) with a Buy rating and a 12-month price target of $205 with a positive risk/reward skew of 2.0:1 from current levels.

We see the company as well positioned to scale its differentiated advantages across space (launch & reusability), connectivity (broadband & mobile satellite constellation) and AI (compute, X, etc.) – with each of these markets having the potential to become multiple trillion-dollar opportunities over a 5+ year time horizon.

Across all three operating segments, we frame the business’ operating trajectory across three key debates: 1) the addressable market opportunity (both current & longer-term); 2) the forward revenue trajectory & execution against those addressable market opportunities; & 3) the trend of upward operating margin trajectory.

In many ways, SpaceX presents a track record of building toward solutions which many industry experts had previously viewed to be implausible (albeit with this execution not being as linear as public market investors typically desire), particularly with regard to their ability to be the low cost provider of various infrastructure as a service offerings.

Overall, we view SpaceX to be a unique company with a diversified opportunity set across all three of its operating segments.”

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