Analysts Lift SpaceX Valuations Following Third-Quarter Results
Brokerages revised their outlook on the stock upward after the company reported strong revenue growth and detailed expansion plans for its AI computing capacity.
By Ananya Gupta ·
Investors saw SpaceX shares climb in premarket trading on October 21 after the company released its third-quarter financial results following the close on October 20. The stock, which had finished the prior session at $147.79, rose roughly 8 percent in early trading. The activity came as financial firms swiftly increased their valuation targets for the stock, a move that reflects heightened confidence in the company's long-term trajectory.
The company reported revenue of $14.6 billion for the quarter, a 161 percent increase from the same period a year earlier. This figure was well above analyst expectations, which had been near $12.7 billion. The firm also posted a net profit of $4.4 billion, a turnaround from a loss in the prior year, while adjusted EBITDA reached $8.8 billion.
A significant driver of the company's results was its Super Intelligence division, which generated approximately $7.6 billion. This makes it the largest revenue contributor for the firm, with growth of nearly 830 percent year-over-year. The Connectivity segment also performed strongly, bringing in $5.2 billion as subscriber additions pushed the Starlink consumer base to 13.6 million.
Following the earnings call, several firms adjusted their price targets for the stock. JPMorgan more than doubled its target to $500 from $240, maintaining an Overweight rating. Cantor Fitzgerald raised its target to $345 from $246, while Barclays increased its figure to $300 from $254. Citi moved its target to $240 from $200, UBS to $230 from $210, and TD Cowen to $224 from $200. Morgan Stanley held an Overweight rating with a $300 target, while Wells Fargo and Clear Street also adjusted their figures higher.
The revisions followed comments from CEO Elon Musk and CFO Bret Johnsen, who provided revenue guidance for the first quarter of 2027 in the range of $33 billion to $37 billion. This projection is well above the roughly $22 billion analysts had modeled. Management also outlined plans for capital expenditures of $35 billion to $40 billion in the fourth quarter, focused on AI computing infrastructure.
Analysts broadly cited the strong quarterly report, progress in AI compute expansion, Starlink developments, and Starship milestones as factors supporting their outlook. The company is targeting 2.5 to 3 gigawatts of nameplate compute capacity by year-end and discussed pathways to 13 gigawatts or more by the end of 2027.
Source: Teslarati
