Oppenheimer raises SpaceX target to $250, sees 20% upside

Oppenheimer analyst Timothy Horan raised his SpaceX price target to $250 from $190, implying about 20% upside from the stock's current level of $208.

"SpaceX is the only vertically integrated AI company with the required capital, data, LLMs, hardware, manufacturing and engineering talent," Horan, who maintained an outperform rating, said in a research note. He sees a potential $10 trillion addressable market for the company by 2035, driven largely by deploying data centers in orbit.

The revision comes less than a week after SpaceX's initial public offering on June 12, which raised close to $86 billion at an IPO price of $135. The stock has surged more than 50% since its debut. Horan's new target is the highest among six analysts who have issued price targets so far, surpassing KGI Securities' $227 target. The consensus average across all analysts stands at roughly $156, weighed down by sell ratings from CFRA at $115 and Morningstar at $63.

SpaceX's valuation hinges on Starship, its next-generation fully reusable rocket that would enable faster Starlink satellite deployment and the infrastructure needed for orbital data centers. The company's AI ambitions, including its Terafab facility and xAI operations, represent the primary upside driver. Lynx Equity said in a separate note that Nvidia offers a more tangible investment opportunity at a lower valuation multiple compared with SpaceX.

The upgrade reinforces institutional conviction in SpaceX's growth trajectory as it transitions from a private launch provider to a publicly traded AI infrastructure company. Investors will watch for Starship's next test flight and any updates on the orbital data center timeline as the next catalysts for the stock.

This article is for informational purposes only and does not constitute investment advice.