Analysts Surge Targets After Strong Q3

Wall Street analysts are rapidly increasing their price targets for SpaceX stock after the company reported a strong third-quarter performance on October 20. Following the release of these results, the stock price saw a significant rise in after-hours and premarket trading on October 21. This upward movement reflects a growing confidence among financial experts regarding the company's future prospects and financial health.

The company's financial report showed a substantial increase in revenue, reaching $14.6 billion, which is a 161 percent rise from the previous year. This figure was notably higher than the approximately $12.7 billion that had been predicted. Additionally, the company reported a net profit of $4.4 billion, a turnaround from a loss in the prior year, and its adjusted EBITDA was recorded at $8.8 billion.

A significant portion of the company's revenue, about $7.6 billion, was generated by its Super Intelligence (AI) division, which saw its revenue grow by nearly 830 percent year-over-year to become the largest contributor. The Connectivity segment also performed well, bringing in $5.2 billion. This growth was supported by a strong increase in subscribers, with Starlink's user base reaching 13.6 million.

During the earnings call, company leadership provided guidance for the first quarter of 2027, projecting revenue between $33 billion and $37 billion. This forecast was considerably higher than the roughly $22 billion that analysts had anticipated. The company also outlined plans for fourth-quarter capital expenditure of $35 billion to $40 billion, which will be directed toward AI compute infrastructure at locations including Memphis and Southaven.

Management also discussed its plans for expanding compute capacity, targeting 2.5 to 3 gigawatts of nameplate capacity by the end of the year and outlining pathways to reach 13 gigawatts or more by the end of 2027. The call also highlighted recent achievements, including Starship's orbital success, the deployment of V3 satellites, and the formation of special committees to explore a possible combination with Tesla.

In response to the quarterly results and the earnings call, several financial firms raised their price targets for SpaceX stock. JPMorgan more than doubled its target to $500 from $240. Cantor Fitzgerald increased its target to $345 from $246, Barclays raised its target to $300 from $254, and Citi raised its target to $240 from $200.

Other firms also adjusted their targets upward, including UBS moving to $230 from $210, TD Cowen raising its target to $224 from $200, and Wells Fargo increasing its target to $274 from $214. Morgan Stanley maintained its Overweight rating with a $300 target, and Clear Street raised its target to $248 from $217. Analysts pointed to strong quarterly results, AI compute expansion, Starlink progress, and Starship milestones as drivers for higher long-term growth.

The stock, which closed at $147.79 on October 20, rose approximately 8 percent in early premarket trading on October 21 as the market reacted to the results and the newly elevated targets. The average analyst price target has moved higher, reflecting greater conviction in SpaceX’s trajectory across launch, connectivity, and the Super Intelligence business, even as elevated spending remains a point of focus.

Looking ahead, the company's guidance for the first quarter of 2027 and its plans for significant capital expenditure will be key areas for investors to monitor. The continued expansion of AI compute infrastructure and the growth of the Starlink subscriber base are also central to the company's strategy. The formation of committees to explore a potential combination with Tesla remains a development that may be discussed further in the future.