JPMorgan says SpaceX will triple after huge third-quarter earnings beat
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Space Exploration Technologies is on a tear Wednesday after its latest quarterly earnings report. It's only the beginning of a rally that could catapult the stock to more than triple its current value, according to JPMorgan. The investment bank has an overweight rating on SpaceX, and more than doubled its 12-month price target on SpaceX shares to $500 from $240, or almost 240% above the Tuesday close. "SpaceX's ambitions are bigger than any company's we've seen," analyst Doug Anmuth said Wednesday in a note to clients. "Importantly, AI is expected to be the long-term driver … significant upside potential remains as the company quite literally builds out the next frontier." Shares of SpaceX have fallen nearly 3% over the past month. But the stock surged more than 9% early Wednesday, one day after SpaceX's latest financial results. SPCX 1M mountain SpaceX has edged down about 3% over the past month. The Elon Musk rocket and satellite company posted adjusted earnings of 45 cents per share on $14.6 billion in revenue in the three months ended September 30, far above analysts' consensus estimates, according to LSEG data. SpaceX also raised some financial targets. Musk pegged annual recurring revenue of $500 billion to $1 trillion by the end of 2027 due to the company's AI push. That's far above the $110 billion consensus estimate on Wall Street, according to numbers compiled by LSEG. Texas-based SpaceX also expects to end the current year with between two and three gigawatts of computing power, and could boost that capacity to roughly 13 gigawatts by 2027, JPMorgan said. That should help SpaceX secure greater monetization opportunities, driving more value to the stock, according to the bank. "Importantly, we believe the 10 GW of incremental compute in 2027 is almost all [Nvidia's] Vera Rubins, which should command significantly higher monetization," Anmuth wrote. Growing adoption of SpaceX's generative AI tool Grok, and its recent deal to acquire AI code editor Cursor, should add even more value to shares, the analyst added. JPMorgan's call matches the consensus on Wall Street, where 33 of 43 analysts rate it a buy or strong buy, LSEG data shows.