TD Cowen's analyst John Blackledge believes that investors should consider purchasing shares of SpaceX, citing the company's potential for growth in both the artificial intelligence and space sectors. He has set a price target of $200, suggesting a 37% upside from the stock's closing price of $145.47 on Monday.
SpaceX, which began trading in June after the largest IPO in history at $135 per share, has seen its stock fluctuate, reaching a high of $225.64 before retreating.
Blackledge highlights that SpaceX's terrestrial AI compute leasing, with clients such as Google and Anthropic, is expected to become the fastest-growing revenue stream, potentially generating around $8.1 billion in AI compute leasing revenue by the fourth quarter of 2026. He anticipates that the company's gigawatt capacity will increase from 2.1 gigawatts in 2026 to 6 gigawatts by the end of 2027.
Additionally, the recent successful launch of SpaceX's Starship rocket is expected to enhance revenue from government missions, further solidifying the company's financial outlook. Overall, the sentiment among analysts is positive, with 31 out of 40 rating the stock as a buy or strong buy, and the average price target indicating a potential upside of 57%