Odaily Planet Daily reports: Following SpaceX’s earnings report, Bank of America reaffirmed its “Buy” rating and maintained its $235 price target, approximately 87.5% above the post-earnings reference price of $125.33. Bank of America believes its bullish thesis is no longer primarily based on rocket launch operations, but rather on AI infrastructure services.
Bank of America expects SpaceX's AI business revenue to approach $24.5 billion in 2026, accounting for more than half of the company's projected total revenue. Meanwhile, revenue contributions from the partnership with Anthropic began in May this year, and the computational partnership with Google is expected to launch in October this year. As a result, Bank of America has raised its earnings forecasts for the coming years: 2026 revenue expectations increased by approximately 15% to $46.9 billion; 2027 revenue expectations increased by approximately 29% to $100.7 billion; and 2028 revenue expectations increased by approximately 29% to $184.8 billion.
However, Bank of America also expects SpaceX to continue generating large negative free cash flow over the next few years as capital expenditures remain elevated. It forecasts free cash flow of -$43.6 billion in 2026, -$45.4 billion in 2027, and -$37.4 billion in 2028. (The Street)