BofA Initiates SpaceX ($SPCX) with ‘Buy’ Rating and $235 Target as Wall Street Quiet Period Ends

By / / Breaking News

Key Takeaways

  • BofA Global Research initiated coverage on SpaceX (SPCX) with a Buy rating and a $235 price target, representing a potential 46% upside from the current share price of $160.42.
  • The rating comes as the 25-day post-IPO quiet period officially expires for the underwriters of the company’s historic $86 billion initial public offering.
  • Analysts highlight SpaceX’s transition from a launch provider to the "foundational enabler" of the global space economy, driven by the rapid scaling of Starlink and AI infrastructure.
  • SpaceX (SPCX) recently joined the Nasdaq-100 index, further cementing its status as a mega-cap growth leader following its June 12, 2026 market debut.

Wall Street Launches Bullish Coverage

BofA Global Research analyst Ronald Epstein led a wave of bullish sentiment on Tuesday, initiating coverage of Space Exploration Technologies Corp. (SPCX) with a high-conviction Buy rating. The firm’s $235 price target is based on a long-term discounted cash flow analysis that views the company as a unique planetary infrastructure play.

The initiation follows the expiration of the mandated quiet period for banks that underwrote the company's $135-per-share IPO. While BofA is optimistic, other major firms have set even higher bars; Morgan Stanley (MS) analyst Adam Jonas established a Street-high target of $300, suggesting the company could eventually reach a $3.3 trillion valuation by 2040.

Starlink and AI Infrastructure Drive Growth

A central pillar of the BofA thesis is the vertical integration of Starlink, which now serves over 10.3 million subscribers. The satellite broadband segment is viewed as a high-margin "utility" that anchors the company’s $19.3 billion in trailing twelve-month revenue.

Beyond connectivity, analysts are increasingly focused on SpaceX’s expansion into AI compute. Following the company’s recent $60 billion acquisition of Cursor, firms like William Blair and Goldman Sachs (GS) believe SpaceX is uniquely positioned to provide low-cost, space-based AI infrastructure for hyperscalers like Google (GOOGL) and Anthropic.

Market Performance and Financial Outlook

Despite the flurry of Buy ratings, SpaceX (SPCX) shares have seen volatility since their mid-June peak of $211.39, currently trading roughly 25% below those highs. However, financial projections remain aggressive, with Wall Street forecasting 95% revenue growth for the current fiscal year as Starship begins regular commercial operations.

While the majority of the Street is bullish, some firms remain cautious. MoffettNathanson initiated with a Neutral rating and a $131 target, citing concerns over the massive capital expenditures required to maintain the Starlink constellation and the pending $22 billion spectrum acquisition from EchoStar.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. We are not financial professionals. The authors and/or site operators may hold positions in the companies or assets mentioned. Always do your own research before making financial decisions.
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