Evercore ISI initiates SpaceX stock coverage with outperform rating By Investing.com

Investing.com - Evercore ISI initiated coverage on SpaceX (NASDAQ:SPCX) with an outperform rating and a price target of $230.00. The stock currently trades at $139.14, representing a potential upside of 65% to the analyst's target and trading just 2% above its 52-week low of $136.78.

Evercore ISI analyst Kutgun Maral described SpaceX as "an extraordinary company on a real path to reshaping the future of humanity." The firm characterized the company as a vertically integrated operation that established a near-monopoly on orbital access through reusable, low-cost launch technology.

The firm's model projects revenue and EBITDA compounding at 106% and 157% respectively through 2028, with margins expanding from 35% to 69%. The company reported revenue of $19.3 billion and EBITDA of $3.95 billion over the last twelve months, with analysts forecasting 95% revenue growth in the current year. According to InvestingPro Tips, analysts anticipate continued sales growth, though the stock appears overvalued based on InvestingPro's Fair Value assessment. Investors can access 11 additional ProTips and comprehensive financial metrics on the platform. The analysis spans five connected businesses including launch services, Starlink connectivity, and AI infrastructure.

Evercore ISI identified several milestones requiring validation, including Starship payload delivery in the second half of 2026, Starlink broadband growth in 2026-2027, mobile strategy feasibility from 2027-2029, and terrestrial compute growth through 2028. The firm also cited orbital compute viability beyond 2029 and Grok/Cursor enterprise adoption from 2026-2028.

The coverage report spans 150 pages with over 130 exhibits, produced by analysts across cable and telecom, communications infrastructure, hardware and networking, internet, and semiconductor sectors. The firm's valuation excludes potential ventures including Mars operations and the Terafab chip project.

In other recent news, SpaceX has been cleared by the U.S. Federal Aviation Administration to proceed with its next Starship test flight following the completion of an investigation into a previous booster return failure. This development allows SpaceX to launch the Starship's upcoming test flight from Texas as early as this week. Additionally, Stifel has reiterated a Buy rating on SpaceX stock with a price target of $190, emphasizing the significance of the upcoming Starship Flight 13 launch. Similarly, Raymond James has maintained a Strong Buy rating, setting a higher price target of $800, and highlighted the reduced time between recent flight cycles as a positive indicator. Meanwhile, Bernstein SocGen Group has reaffirmed an Outperform rating with a $239 price target after China's successful landing of a Long March 10B rocket booster, noting the implications for SpaceX's technological advancements. These recent developments reflect ongoing interest and confidence from analysts in SpaceX's future prospects.

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