Key Insights
- Pivotal expects Starlink Mobile to capture 13% of the U.S. wireless market by 2036.
- Morgan Stanley maintained its $300 target, while SPCX traded below its recent $176.42 high.
SpaceX stock price prediction attracted renewed attention on Oct. 12 after Pivotal Research raised its price target. The upgrade followed SpaceX’s agreement to acquire wireless spectrum from Grain Management.
SpaceX (SPCX) closed at $163.46 on Monday, recovering modestly from Friday’s $162.57 close. However, shares remained approximately 7.4% below their Oct. 6 intraday high of $176.42.
Pivotal Research raised its target from $220 to $230, citing Starlink Mobile’s expansion potential. Morgan Stanley separately maintained a $300 target, reflecting expectations for longer-term growth.
Pivotal Raises SpaceX Stock Target to $230
Analysts have maintained a bullish outlook for SpaceX after the company made a big bet for its Starlink product. SpaceX announced that it has acquired a low-band spectrum from Grain Management in an $8 billion deal.
The move sent shockwaves in the stock market, with top American telecom companies slumping. This includes top companies like Verizon (VZ), Comcast (CMCSA), AT&T (T), and T-Mobile. These stocks plunged amid fears that SpaceX will disrupt their businesses. It may do that by offering better services at a lower cost.
The retreat was not confined to US telecom stocks. It also happened globally, with telecom companies like BT Group, Vodafone, and Deutsche Telekom slumping.
Analysts now view SpaceX’s entry into the wireless industry as a positive development, given the size of the potential market. In a recent report, Pivotal Research said it expects SpaceX to capture a 13% market share by 2036.
The firm projects that Starlink will reach approximately 160 million subscribers by then, including 50 million in the US. Pivotal also raised its price target from $220 to $230, implying about a 55% upside from current levels.
The challenge, however, is that the company will need to spend billions of dollars in rolling out the process. Pivotal believes that the company will need to spend between $50 billion and $100 billion for a nationwide tower-based network.
Top Analysts Have Boosted Their SPCX Stock Forecast
In addition to Pivotal Research, other analysts have boosted their outlook for SpaceX shares. For example, Adam Jonas, a Morgan Stanley analyst, said that he expects the stock to jump to $300, representing a 85% from the current level.
Jonas pointed to the upcoming Starship Flight 15, which will mark a significant step towards making its next-generation rocket fully reusable. The test will take place on November 8 and will see the company attempt to catch the returning spacecraft with mechanical arms at the launch tower.
Other analysts have boosted their outlooks. William Blair reiterated their outperform rating, while Barclays has a target of $254.
Despite all this, the company faces major challenges. For one, there are signs that the company’s credit is coming under pressure as bond yields continue rising. The yields continued to rise after the company said it would raise $40 billion through bank loans and investment-grade government bonds. It is raising these funds to buy Nvidia chips to boost its data center business.
SpaceX Stock Price Technical Analysis
The daily chart shows that the SPCX stock has rebounded in the past few months. It soared from a low of $105.27 in August to a high of $176.33.
The stock recently moved above the important resistance level of $157.99, its highest point on September 21. Moving above that level confirmed the bullish outlook.
At the same time, the stock has now attempted to retest that level, confirming a break-and-retest pattern. It has also remained above the 50-day Exponential Moving Average (EMA).
Therefore, the stock may rebound in the coming days or weeks. If this happens, the initial target to watch will be at $176.33.
This article is for informational purposes only and does not constitute financial or investment advice.