Buy SpaceX shares ahead of this week's Starship launch, says UBS
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SpaceX could get a boost if its upcoming rocket launch goes well, according to UBS. "SpaceX has made multiple hardware and software upgrades since the last flight," analyst Gavin Parsons wrote in a note on Wednesday. "This flight would demonstrate multiple new milestones and in our view be a positive for the stock." The bank has a buy rating on the stock and a $210 price target, implying a 54% upside from Tuesday's close. SpaceX is scheduled to hold its 13th rocket launch on Thursday. According to Parsons, this will support the bank's forecast for four commercial launches this year and 1,588 flights in 2031. Thursday's flight will focus on deploying Starlink V3 satellites, engine reliability and controlled reentry, he said. SPCX 1M line SpaceX in One Month "Flight 13 is important because it is intended to validate some of the key capabilities required for this launch ramp, including booster engine relight reliability, in-space Raptor relight, Starlink V3 satellite deployment, and continued heat shield development," Parsons said. Shares of the rocket company are hovering slightly above their IPO price of $135, but have fallen 40% from a $225.64 peak reached on June 16. SpaceX had the biggest IPO in history, surging to a $2 trillion valuation on its first day. UBS' rating matches the Wall Street consensus, where 26 out of the 31 analysts covering the stock have a buy or strong buy rating, according to LSEG.