UBS Initiates SpaceX at Buy, $210 PT

UBS analyst John Hodulik initiates coverage on SpaceX (NASDAQ: SPCX) with a Buy rating and a price target of $210.

“We are initiating coverage of SpaceX with a Buy rating and price target of $210.

We view SpaceX as an unparalleled set of assets with a multifaceted return profile and multiple drivers of upside for long term, risk tolerant investors.

Starship – the most advanced heavy-lift, re-usable rocket – is the foundational technology that unlocks opportunities in launch, communications and AI compute creating a total addressable market nearing $30T.

Starship would effectively give SpaceX commercial control over access to space for the next decade, and we expect revenues/EBITDA to grow at a ~70%/90% CAGR through ’31 to $660B/$512B as opportunities in AI and connectivity scale and rapid reusability drives the launch cost per kilogram to just $200 from $1K currently ($50K for the space shuttle).

While not in our base case, SpaceX is uniquely positioned to exploit off planet business models as they emerge, providing investors a call option as Elon Musk looks to fulfill his vision of making life multiplanetary.”

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