35 Analysts Cover SpaceX. Here's Why Their Price Targets Have Almost Nothing to Do With Rockets.
Key PointsMorgan Stanley assigns less than 3% of its $300 SpaceX price target to external launches.
The article discusses how SpaceX, known for its rockets, has analysts assigning almost no weight to rocket launches when determining the company's stock price. The 35 analysts tracked by TipRanks have price targets ranging from $75 to $450, with an average consensus estimate of $217. However, this figure is nearly 50% above the stock's current price.
Analysts are placing varying values on Starlink's future profits, SpaceX's AI ambitions, and the significant capital required to make these opportunities sustainable. Morgan Stanley's Adam Jonas has a $300 price target for SpaceX, but only $8 per share, or less than 3%, is attributed to its external launch business. SpaceX's revenue reached $7.81 billion in Q2, but the Space segment contributed only $962 million, with external launch services generating just $648 million, or 8% of total revenue.
The company has spent around $1.08 billion on research and development for its Starship, a next-generation rocket system. SpaceX's Connectivity segment generated $4.29 billion in Q2 revenue and $1.66 billion in operating income, with an operating margin of nearly 39%. The segment's subscriber base doubled year-over-year to 12 million, although the average monthly revenue per subscriber declined from $85 to $66 as SpaceX expanded into lower-priced markets.
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