Jim Cramer highlighted that Goldman Sachs' increase in SpaceX's price target reflects a more credible valuation, especially after the stock's decline to $104.83 in August. The new target suggests a 37% upside from the recent closing price and is slightly above the stock's all-time high.
Cramer emphasized that SpaceX's valuation, currently at approximately 137 times next year's earnings estimates, is supported by its diverse growth avenues, including the Starlink satellite network and a burgeoning computing business. Reports indicate that SpaceX is looking to raise $40 billion to expand its operations, which could position it as a major client for Nvidia.
While Cramer does not consider SpaceX suitable for his investment portfolio yet, he believes the company's progress is making its ambitious potential increasingly tangible, potentially ahead of Tesla's trajectory