SpaceX Stock Just Scored a New 'Buy' Rating. What to Know.

Pivotal Research’s analyst Jeffrey Wlodarczak initiated coverage of SpaceX (SPCX) shares today with a “Buy” rating and a bullish $220 price target. Wlodarczak’s research note suggests SPCX is significantly undervalued at current levels and could rally as much as 45% over the next 12 months. 

Note that SpaceX stock has been volatile since its debut in June, currently down about 23% versus its year-to-date high. 

Why Is Pivotal Research Bullish on SpaceX Stock?

In his research note, Wlodarczak highlighted SpaceX’s pioneering Starship program as the core catalyst driving long-term value. 

Fully reusable launch capabilities lower payload costs to low-Earth orbit, granting the company a structural monopoly in commercial space transport, he told clients. 

According to the Pivotal Research analyst, this technological leap allows SPCX to rapidly expand its total addressable market (TAM), particularly within the government sector. 

As launch frequency accelerates and operational efficiencies take hold, Starship’s unit economics are expected to significantly widen SpaceX’s competitive moat against major aerospace incumbents and legacy satellite service providers, he added.

What Else Could Drive SPCX Shares Higher?

Wlodarczak’s positive stance also rests on explosive growth in SpaceX’s broadband satellite unit, Starlink. 

He expects the firm’s annual corporate revenue to leap from $46.6 billion this year to $118.2 billion in 2027, driven by widespread adoption of Starlink’s direct-to-cell and enterprise internet services.

In his report, Wlodarczak also estimated a sharp increase in SPCX’s adjusted EBITDA to over $22 billion next year as capital expenditure intensity cools and subscriber margins expand. 

All in all, with massive institutional support and a balance sheet reinforced by robust cash flow generation, Pivotal Research views the company’s premium valuation as justified by its exceptional multi-year growth trajectory. 

How Wall Street Recommends Playing SpaceX

Investors should note that Pivotal Research is far from alone in recommending buying SPCX stock at current levels. 

According to Barchart, the consensus rating on billionaire Elon Musk’s space infrastructure and artificial intelligence company currently sits at “Moderate Buy," with price targets as high as $800 indicating potential for a more than 5x rally over the next 12 months. 

On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.