Bernstein SocGen Reiterates Outperform on SpaceX, $239 PT
Bernstein SocGen Group analyst Douglas Harned reiterated an Outperform rating and $239 price target on SpaceX (NASDAQ: SPCX).
“China Long March 10 booster catch – The real competitor steps forward; SpaceX readies launch 13; On July 10th, China successfully landed the first-stage booster from a Long March 10B rocket launch.
We see China as the lead competitor for SpaceX. This launch and recovery comes roughly six months earlier than we expected.
China is moving aggressively in to place a research station on the moon and create large LEO satellite constellations.
In December, China filings filed with the ITU to place more than 200,000 satellites in low earth orbit. Despite China’s success in landing its Long March 10B, it is far behind SpaceX.
This was the first successful landing of a large launch vehicle booster. It has yet to do the reuse of a booster. SpaceX has been relaunching boosters for nearly ten years with its Falcon 9 rocket.
165 launches were done last year, which also required a robust production line for second stages.
To reach a high volume of launch, China will need to demonstrate relaunch capabilities and move to high rate production.
Most importantly, Long March 10 is only first stage reuse, whereas Starship is intended to be full reuse (not yet demonstrated).”
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