Pivotal Research Starts SpaceX (SPCX) at Buy

Pivotal Research analyst Jeffrey Wlodarczak initiates coverage on SpaceX (NASDAQ: SPCX) with a Buy rating and a price target of $220.00.

The analyst comments: “A successful investment case in SpaceX at the current ~$2 trillion EV rests almost entirely on a single admittedly massive engineering bottleneck: Starship reusability (i.e. 20-50 flights per Starship with relatively inexpensive and quick refurbishment/redeployment). If Elon Musk can solve for this fundamental issue it potentially drives down the cost of launches to space to the equivalent of terrestrial freight opening up an unarguably massive opportunity including: 1) dramatically expanding Starlink capacity efficiently allowing Starlink to take a material share of the current $1.7 trillion terrestrial/wireless TAM, 2) deploying orbital data centers that lever Starlink constellation to bypass terrestrial power grids/permitting processes and take material share of the massive neocloud/hyperscaler market (multi trillion TAM opportunity by 2030), 3) establishing a monopoly space-gatekeeper position to exact tolls or equity from emerging orbital business models or creating new internal business models (medium term ideas include: further defense wins (Golden Dome project), space manufacturing, point to point suborbital passenger flights, spaced based power beaming to earth, space as WAN for IoT, global sensor and earth observation network). In the end, investors are debating xAI, Colossus, and Starlink take-rates. Those matter only after Starship works. Our $220 target is a call on reuse 20–50 flights per vehicle, cheap refurb, fast turnaround. If that is solved, the rest of the model can happen. If it is not, SPCX is a different and much smaller company.”

For an analyst ratings summary and ratings history on SpaceX click here. For more ratings news on SpaceX click here.

Shares of SpaceX closed at $147.95 yesterday.

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