JPMorgan has more than doubled its price target on SpaceX (SPCX), betting that a rapid buildout of computing power will drive the company’s revenue into the hundreds of billions of dollars.
Analyst Doug Anmuth raised his target to $500 from $240 and maintained an Overweight rating following the company’s third-quarter results, according to Yahoo Finance. Anmuth also more than doubled his estimates for 2027 and 2028.
Compute Capacity and Revenue Projections
JPMorgan now expects SpaceX to have 10 gigawatts of compute capacity by the end of 2027. The bank models $254 billion in revenue for 2027, which would put SpaceX on pace for an annualized revenue run rate of about $400 billion a year by the end of that year. That projection remains below management’s own target range of $500 billion to $1 trillion.
Valuation Basis
The new $500 target is based on 20 times JPMorgan’s 2028 earnings per share estimate of $24.41 under generally accepted accounting principles (GAAP).
SpaceX shares rose 8.10% in premarket trading.
Execution Risks and Merger Talk
Anmuth noted that SpaceX still has to deliver on several fronts, including building out compute, raising a significant amount of capital, and continuing to see strong demand.
He also pointed to comments from Elon Musk that SpaceX and Tesla (TSLA) have formed special committees to discuss a possible merger. Any deal would require shareholder approval and could face regulatory scrutiny.
Last month, The Daily Hodl reported that Morgan Stanley had reaffirmed its buy rating and $300 price target on SpaceX.
