SpaceX (SPCX) Stock Receives Bullish Outperform Rating From Evercore ISI Ahead of Starship Flight 13

Key Takeaways

• Evercore ISI has launched coverage on SpaceX (SPCX) with an Outperform rating and set a price target of $230
• Shares of SPCX are currently trading at $139.14, hovering approximately 2% above the 52-week low of $136.78
• Evercore anticipates revenue and EBITDA expansion of 106% and 157% respectively by 2028
• The 13th Starship test flight is set to launch no earlier than Thursday evening at 6:45 p.m. EDT from the Starbase facility in Texas
• Wall Street consensus rates SPCX as a Strong Buy with an average analyst target of $245.32

On Monday, Evercore ISI launched coverage of SpaceX (SPCX) with an Outperform designation and established a $230 price objective, describing the aerospace manufacturer as “an extraordinary company on a real path to reshaping the future of humanity.”

At the time coverage was initiated, shares were changing hands at $139.14, positioned merely 2% above the 52-week low of $136.78. The firm’s price objective suggests approximately 65% potential appreciation from current trading levels.

Space Exploration Technologies Corp., SPCX

The coverage launch coincides with SpaceX’s preparations for Starship’s 13th test mission, which is planned to lift off no earlier than Thursday evening at 6:45 p.m. EDT from the company’s Starbase launch complex in Texas.

Evercore analyst Kutgun Maral spearheaded the comprehensive 150-page research report, featuring more than 130 exhibits and incorporating insights from analysts specializing in cable and telecom, communications infrastructure, hardware, internet, and semiconductor industries.

Maral’s central investment thesis emphasizes how SpaceX’s various business divisions create synergies with one another. Reusable launch vehicles reduce launch expenses, accelerating Starlink constellation deployment. Revenue generated from Starlink then finances ground-based computing infrastructure, mobile connectivity solutions, and prospective space-based data centers.

Evercore’s Financial Projections

The investment firm forecasts SpaceX’s revenue and EBITDA will grow at compound rates of 106% and 157% respectively through 2028, while operating margins are expected to expand from 35% to 69%. During the trailing twelve-month period, SpaceX generated $19.3 billion in revenue and $3.95 billion in EBITDA.

Analysts are projecting 95% revenue expansion for the current fiscal year. The research covers five distinct business verticals: launch services, Starlink connectivity solutions, mobile network strategy, ground-based computing, and space-based computing infrastructure.

Maral acknowledged significant execution risks in the analysis. The Starship vehicle has yet to successfully deploy an operational payload. Starlink’s mobile service offering requires meaningful market adoption. Space-based computing infrastructure may not undergo testing until 2029 or potentially later.

Flight 13: A Critical Milestone

The forthcoming Starship Flight 13 mission represents the second evaluation of the enhanced Version 3 configuration, which features increased size and enhanced performance capabilities compared to previous iterations.

The prior test flight in May encountered significant challenges. The Super Heavy first stage shifted into an unplanned orientation during stage separation, experienced thermal damage, and multiple engines failed to successfully reignite, resulting in the complete loss of the booster.

The Federal Aviation Administration has subsequently authorized SpaceX to proceed following completion of its investigation into the anomaly.

Stifel maintains a Buy rating on SPCX shares with a $190 price objective. Raymond James holds a Strong Buy rating with an $800 target. Bernstein SocGen Group has assigned an Outperform rating with a $239 price target.

The overall Wall Street consensus on SPCX stands at Strong Buy, derived from 23 Buy ratings, four Hold ratings, and one Sell rating issued over the past three months. The mean price target across all covering analysts is $245.32, suggesting approximately 72% upside potential from present trading levels.

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