Shares of Elon Musk-led SpaceX soared 13% during the trading session on Friday, August 7 as Argus reportedly upgraded rocket firm's stock to 'Buy' from 'Hold'.
SpaceX shares advanced 13.4% to $130.33 apiece, while the benchmark Nasdaq was up 1.21% by 9:47 pm IST.
This surge comes as Argus Research analyst Steven Silver upgraded the stock with a target price of $160, hailing SpaceX's first earnings post listing, noting how the firm's “strong operational performance” and “robust growth outlook” surpasses risks over higher-than-expected AI spending, as per reports.
According to the analyst, SpaceX reported a solid second quarter as its revenue jumped 92% year over year to $7.8 billion. The satellite firm forecasted a 2026 year-end revenue nearing $100 billion, beating the company's earlier forecast.
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He highlighted Elon Musk-led firm's plans to spend more than expected on AI. Despite this, he is “encouraged by the rapid payback on these investments” due to the firm;s strong growth in computing capacity. The brokerage further expects SpaceX revenue to hit $110 billion in 2027. As per this estimate, a target price of $160 is set, valuing the firm at 20 times its forecasted revenue in 2027, reports said.
Shares to remain volatile
Even as Argus stays bullish on SpaceX, the shares are expected to be volatile as more shares become eligible for sale over the next year.
Recently, the company's first lock-up expiration made about 911.5 million shares eligible for trading. Despite this, SpaceX shares climbed, indicating investors continued interest without heavy selling. The company's strong operating performance and long-term growth outlook is likely to offset near-term risks, it said.
ALSO READ: SpaceX Shares Rocket 8% As Wall Street Eyes Turnaround In First Earnings Post Listing
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