Bernstein doubled down on its SpaceX’s (NASDAQ: SPCX ) outlook on October 19, confirming both the “Buy” rating and the $248 SpaceX stock price target.
The price target, which represents a 70% upside potential from the last closing price of $146, was first set in late September, when analyst Douglas S. Harned argued Starlink’s residential broadband business would generate approximately $64 billion in revenues in 2031.
Moreover, the affirmation comes just one day ahead of the space company’s next earnings report, scheduled for tomorrow, October 20, which investors hope can answer the question of whether SpaceX’s expanding AI efforts can justify substantial capital investments.
SpaceX stock price six-month chart. Source: Finbold
Wall Street is confident SpaceX spending concerns
As of press time, analysts expect third-quarter revenue of $12.89 billion tomorrow, up 65% from the same period last year. At the same time, the consensus earnings estimate stands at $0.14 per share, compared with a loss of $0.09 in the previous quarter.
In the second quarter, SpaceX reported revenue of $7.81 billion, marking a 92% increase year over year. However, the company also recorded $18.4 billion in capital expenditures, with $15.83 billion allocated to AI infrastructure alone, generating a lot of discussion among shareholders.
Despite concerns about elevated spending, Wall Street analysts see considerable potential for the stock. Notably, the average price target of $217.5 represents nearly 50% upside from the current levels, per TipRanks data .
SPCX stock 12-month forecast. Source: TipRanks
Analysts set SpaceX stock price target ahead of Q3 earnings report
All of the recent analyst calls have been bullish . For example, on October 16, Evercore ISI analyst Kutgun Maral raised his price target on SpaceX by approximately 20%, from $230 to $275, while maintaining an “Outperform” rating.
Maral expects SpaceX to exceed Wall Street’s third-quarter revenue forecasts and projects the company will reach an annualized revenue run rate of $104 billion by year-end, surpassing its $100 billion target.
Similarly, Pivotal Research analyst Jeffrey Wlodarczak reiterated his “Buy” rating on October 12 and raised his price target from $220 to $230. The analyst expects third-quarter revenue to reach $13.2 billion, compared with $7.81 billion in the second quarter, and forecasts earnings of $0.21 per share.
On the same day, Stifel analyst Jonathan Siegmann maintained his “Buy” rating on SpaceX, with a price target of $190. In his report, Siegmann covered SpaceX’s plan to acquire wireless spectrum from Grain Management for approximately $8 billion, which he noted could help Starlink Mobile improve connectivity for users inside buildings and act as an important step toward expanding SpaceX’s mobile network capabilities.
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