SpaceX (SPCX) Gains Ground After Beating Q2 Estimates, Morgan Stanley Eyes $300 Target

Key Takeaways

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Shares of SPCX advanced 1.2% to reach $139.63 during Wednesday’s trading session, driven by quarterly revenue surging 91.9% year-over-year to $7.81 billion
The company posted a loss of $0.09 per share, significantly outperforming Wall Street’s projected loss of $0.26
Morgan Stanley maintained its Buy recommendation with a $300 price objective, describing the valuation as attractive
The aerospace company unveiled plans for a massive $100 billion Starship launch complex in Louisiana aimed at enabling thousands of annual launches
Analyst consensus stands at “Moderate Buy” with a collective price target averaging $232.35

Shares of SpaceX (SPCX) posted gains of 1.2% during Wednesday’s session, settling at $139.63 after reaching an intraday peak of $140.18.

Space Exploration Technologies Corp., SPCX

Trading activity registered approximately 59 million shares, representing a decline of roughly 46% compared to the typical daily volume of 110 million shares.

The upward momentum came on the heels of impressive quarterly results. The aerospace firm posted a per-share loss of $0.09, substantially better than the Street’s anticipated $0.26 loss.

Quarterly revenue reached $7.81 billion, marking a substantial 91.9% increase from the corresponding period in the prior year.

In response, Morgan Stanley’s Adam Jonas maintained his Buy recommendation alongside a $300 price objective, characterizing SPCX as “attractively valued” when considering its 10x sales multiple on 70% growth and 25x EBIT multiple on 113% growth, according to his fiscal 2028 projections.

Jonas suggested that market participants may be underappreciating the ambitious nature of SpaceX’s Starship launch schedule.

Massive Louisiana Launch Complex in Development

The renewed analyst focus emerged from SpaceX’s unveiling of a $100 billion Starship launch complex planned for Louisiana’s southern coastline in Vermilion Parish.

The expansive facility would encompass approximately 125,000 acres, featuring five separate launch complexes along with manufacturing capabilities and supporting infrastructure.

Ground-breaking is anticipated to commence in 2027. According to the company, the installation could facilitate thousands of Starship missions each year.

Jonas highlighted that SpaceX intends to construct 15 total launch pads, dramatically exceeding its current three. His analysis suggests that with just two launches daily per pad, the company could achieve approximately 5,800 annual launches by 2040 utilizing only eight pads.

“We do not need a fully operational Starbase, LA to get to even our 2040 forecasts,” Jonas wrote, where he projects $3.5 trillion in revenue.

Wall Street Sentiment and Potential Headwinds

The bullish view isn’t universal. Susquehanna moved SPCX to an underperform rating last August. CFRA maintains a sell stance with a $115 price objective, while certain valuation models suggest shares could decline to $95 by 2028 if artificial intelligence and space initiatives fail to generate profitability.

The Louisiana development has attracted environmental opposition, particularly regarding potential ecological impact to the coastal region.

Skeptics also highlight that Musk’s proposed million-satellite AI network could necessitate nine or more Starship missions daily, representing an extraordinarily ambitious operational tempo.

SpaceX is progressively phasing out Falcon 9 Starlink missions from Florida, transitioning more capabilities to Starship. This shift heightens dependence on achieving consistent, high-cadence Starship launch operations.

The company intends to deploy its initial Nvidia-equipped AI satellites during late 2027, extending its reach into space-based computing infrastructure.

Current trading levels sit above the IPO price of $135 but remain considerably below the all-time high of $225.64.

The Street’s overall outlook reflects a Moderate Buy rating derived from 24 Buy recommendations, five Hold ratings and three Sell ratings, with the average price objective at $232.35, suggesting potential upside of approximately 66% from present levels.

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