BofA Initiates SpaceX at Buy, $235 PT

BofA Securities analyst Ronald Epstein initiates coverage on SpaceX (NASDAQ: SPCX) with a Buy rating and a price target of $235.

“We initiate coverage of SpaceX (SPCX) with a Buy rating and $235 PO, derived by a long-term DCF considering base, bear, and bull cases (see inside).

SpaceX has evolved from a launch company into the foundational enabler of the space economy and the leading provider of space-based applications as a result.

SpaceX’s extensive moats on reusable launch and proliferated space applications are in our view laying the foundation for Starship and future applications to drive another paradigm shift in capabilities.

The central debate is whether Starship can achieve the reliability, cadence, and economics required to unlock the next phase of growth.

Much of SpaceX’s long-term opportunity, including Starlink v3 deployment and future compute infrastructure, depend on Starship successfully commercializing full reusability.

If achieved, we believe launch costs could decline by an order of magnitude while capacity expands dramatically. If delayed, the timing of many future growth vectors moves materially to the right.”

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