JPMorgan Boosts SpaceX Price Goal to $500 After Quarterly Report

what happened

According to GuruFocus, JPMorgan has increased its target for SpaceX shares to $500 from $240 while keeping an Overweight recommendation. The move follows the company's third-quarter report. Analyst Doug Anmuth more than doubled his revenue forecasts for 2027 and 2028, and the shares climbed 8.10% before the opening bell.

The new target rests on 20 times JPMorgan's 2028 GAAP EPS estimate of $24.41. The bank now models 10 gigawatts of computing capacity by the end of 2027 and revenue of $254 billion for that year, which would translate into an annualized run rate near $400 billion by year-end. Management's own range is $500 billion to $1 trillion.

Anmuth noted that SpaceX still must deliver on compute build-out, secure substantial funding and sustain demand. He also cited Elon Musk's statement that SpaceX and Tesla have set up special committees to explore a possible merger, a deal that would require shareholder approval and could draw regulatory review.

why it matters

For investors in Tesla and SpaceX, the pace of merger talks will be the key watch point, since any combination needs shareholder approval and regulatory clearance. A higher analyst target supports sentiment around the stock, but delivering on compute and funding plans remains the main risk.

market impact

SpaceX, Tesla: higher targets and merger talks shift sentiment around both stocks

tags

instruments