Why SpaceX Stock Popped on Monday

On Monday, SpaceX's stock surged by 5.6%, reaching a $190 price target according to investment bank Stifel. This bullish movement comes after a rebound that began on Friday. Stifel analyst Jonathan Siegmann reiterated his buy rating and $190 price target, attributing the positive shift to the Democratic midterm sweep, which may ease restrictions on AI data center construction on Earth.

Siegmann argues that SpaceX's ultimate goal is to move these data centers into orbit, rendering terrestrial limitations less impactful. In his latest note, Siegmann specifically recommends buying SpaceX stock ahead of a potentially successful Starship Flight 15, scheduled for this Friday. A successful flight, coupled with the dual capture of the Super Heavy booster and the Starship spacecraft, would expedite SpaceX's deployment of satellite data centers.

Even a near-complete success would provide valuable data to advance SpaceX's ultimate objective. Siegmann also highlights the potential for SpaceX to establish its own cellphone network, further boosting profits from its Starlink Connectivity business. The analyst believes this could result in a 35% increase for SpaceX stock, from $140 to $190, over the next year.