Morgan Stanley Maintains $235 Price Target for SpaceX, 87.5% Above Post-Earnings Reference

Huo Xing Finance reports that Bank of America reaffirmed its “Buy” rating on SpaceX following its earnings report, maintaining a price target of $235, 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 the rocket launch business, but rather on its AI infrastructure segment. 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 total projected revenue. Meanwhile, revenue contributions from its partnership with Anthropic began in May this year, and its computing power collaboration with Google is expected to launch in October this year. As a result, Bank of America has raised its revenue forecasts for the coming years: 2026 revenue forecast increased by approximately 15% to $46.9 billion; 2027 revenue forecast increased by approximately 29% to $100.7 billion; and 2028 revenue forecast increased by approximately 29% to $184.8 billion. However, Bank of America also expects SpaceX to continue generating significantly negative free cash flow over the next few years as capital expenditures continue to expand. It forecasts free cash flow of -$43.6 billion in 2026, -$45.4 billion in 2027, and -$37.4 billion in 2028.