TD Cowen Keeps Buy on SpaceX, $200 Price Target

TD Cowen analyst Gregory Williams reiterated a Buy rating and $200 price target on SpaceX (NASDAQ: SPCX).

“SPCX Buys More Spectrum; Talk of Terrestrial Deployment Puts Carriers on Notice; This afternoon AMC, SPCX announced the purchase of 800MHz.

Not surprising, but the PR noted building a “terrestrial deployment” and “to become a major mobile carrier.” We still believe SPCX wants an MVNO first; thus, SPCX could be bluffing, but we recently spoke with the carriers and still aren’t budging.

This could be a tactic, but taking SPCX on its word, this puts the carriers on notice.

This afternoon, SpaceX announced an agreement to acquire up to 14 megahertz of paired 800 MHz spectrum nationwide licenses from Grain Management, expanding the company’s terrestrial wireless holdings as it continues to build out its direct-to-device and mobile connectivity strategy.

The portfolio consists of low-band 800 MHz spectrum covering the continental U.S., Hawaii, and Puerto Rico.

SpaceX said the acquisition will support its broader vision of integrating satellite and ground-based wireless assets, describing the spectrum as an important component of its “advanced terrestrial deployment” efforts.

The company indicated that combining terrestrial spectrum with Starlink’s existing satellite infrastructure should enhance network performance, expand coverage, and improve service reliability for future mobile offerings.

The transaction remains subject to customary regulatory approvals. Financials were not disclosed.

In after market trading, the wireless stock are trading off as T is down ~6.5%, TMUS is down ~6.8%, and VZ is down ~6.0%, while the tower stocks have modestly rallied as AMT is up ~5.2%, CCI is up ~6.4%, and SBAC is up ~6.4%.

Lastly, SPCX is up ~1.4% after hours.”

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