Goldman Sachs Raises SpaceX Price Target to $245

Goldman Sachs analyst Eric Sheridan raised the price target on SpaceX (NASDAQ: SPCX) to $245 (from $230) while maintaining a Buy rating.

“In addition to the fundamental takeaways above, SPCX management disclosed that both SPCX and TSLA have formed special committees consisting of independent directors to discuss the idea of a potential business combination.

We do not provide an opinion about the likelihood and/or merits of any potential transaction between the two companies, but any potential updated disclosures by either company in the future will likely be important for investors.

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.

We also remain constructive around the consolidated company’s vertical integration strategy & resulting structural cost/competitive advantages that we expect to build in momentum in future years.

In the coming quarters, the stock performance is likely to remain focused on elements of a) Starship launches providing data around long-term reuse/frequency trends in Launch; b) Connectivity broadband user growth and medium term build plans for broader mobility; c) the ability for the company to meet increased terrestrial compute scaling goals with strong monetization that capitalizes on the pricing environment for cloud services and increased operating momentum around platform/product offerings (Cursor, Grok, GrokBot); & d) stock flows/trading dynamics driven by lock-up expirations.

We reiterate our Buy rating on the shares of SPCX and adjust our 12-month price target from $230 to $245 to reflect our updated operating estimates post this earnings report – with the shares still ~(25)% lower than peak closing price post-IPO, we highlight what we see as a positive risk/reward skew on current shares that is increasingly compelling when looking out across potential outcomes over the next 12+ months.”

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