JPMorgan more than doubles SpaceX price target to $500

JPMorgan more than doubled its price target for SpaceX (SPCX), anticipating that rapid expansion of compute capacity will drive revenue into hundreds of billions of dollars. Yahoo Finance reported that JPMorgan analyst Doug Anmuth increased the target from $240 to $500 after SpaceX's third-quarter results. Yahoo Finance reported that Anmuth maintained an Overweight rating. Anmuth also increased estimates for 2027 and 2028 to more than twice the previous levels.

JPMorgan forecasts that SpaceX will reach 10 gigawatts of compute capacity by the end of 2027. JPMorgan projects revenue of $254 billion for 2027, putting SpaceX on course to reach an annualized revenue run rate of about $400 billion by year-end. That projected run rate remains below management's target range of $500 billion to $1 trillion. JPMorgan bases the $500 price target on 20 times the bank's 2028 earnings per share forecast of $24.41 under generally accepted accounting principles (GAAP). SpaceX shares gained 8.10% in premarket trading.

Anmuth said SpaceX still needs to execute, including expanding compute capacity, raising substantial capital and sustaining strong demand. Anmuth highlighted Elon Musk's comments that SpaceX and Tesla (TSLA) have established special committees to consider a possible merger. Any merger would require shareholder approval and could attract regulatory scrutiny.

Morgan Stanley reaffirmed a buy rating and a $300 price target for SpaceX last month.