Goldman Sachs raises SpaceX price target to $220 amid strong Q2 earnings

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Goldman Sachs raised SpaceX's price target to $220, citing strong Q2 earnings and developments in AI and crypto. Revenue exceeded estimates by 17%, while GAAP operating profit surpassed forecasts by 92%. The AI segment generated $7.67 billion, compared to the expected $5.6 billion. Goldman now forecasts 2026 AI revenue at $23.3 billion, a 49% increase. Starlink is projected to reach a $10 billion annualized revenue run rate by year-end. With shares trading at $125, the new target implies 76% upside. However, free cash flow is expected to reach -$26.3 billion in 2026.

According to Cowen Research, SpaceX's Q2 revenue exceeded Goldman Sachs' expectations by approximately 17%, and its GAAP operating profit exceeded expectations by about 92%. AI business revenue for the quarter reached $7.67 billion, surpassing Goldman Sachs’ forecast of $5.6 billion; Goldman Sachs raised its 2026 AI revenue forecast by 49% to $23.3 billion. Starlink broadband subscriber numbers exceeded expectations, with management projecting an annual revenue run rate of $100 billion by December. The 14th Starship launch is expected to occur within the next month. Goldman Sachs raised its price target from $205 to $220, maintaining a Buy rating, implying approximately 76% upside from the current share price of $125. Goldman Sachs forecasts a full-year free cash flow of negative $26.3 billion for 2026.

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