SpaceX (NASDAQ:SPCX) Raised to Strong-Buy at Phillip Securities

Key Points

• Phillip Securities upgraded SpaceX from “strong sell” to “strong buy.” Other analysts also raised price targets, with MarketBeat reporting a consensus “moderate buy” rating and an average target price of $244.19.
• SpaceX reported quarterly EPS of $0.35, beating the $0.10 consensus estimate, while revenue reached $14.57 billion—up 161.4% year over year.
• Despite stronger analyst sentiment and growth prospects, risks include substantial cash burn, planned debt financing, an unprofitable launch division, and insider share sales.

SpaceX (NASDAQ:SPCX - Get Free Report) was upgraded by equities research analysts at Phillip Securities from a "strong sell" rating to a "strong-buy" rating in a research report issued on Friday, Zacks reports.

A number of other equities research analysts have also weighed in on the company. Bank of America lifted their price objective on SpaceX from $235.00 to $275.00 and gave the stock a "buy" rating in a research report on Thursday. Wells Fargo & Company boosted their target price on SpaceX from $214.00 to $274.00 and gave the company an "overweight" rating in a research note on Wednesday. Daiwa Securities Group initiated coverage on SpaceX in a report on Thursday, July 2nd. They set a "neutral" rating and a $175.00 target price for the company. Guggenheim began coverage on SpaceX in a research note on Friday, August 7th. They issued a "buy" rating for the company. Finally, Arete Research set a $450.00 price target on shares of SpaceX in a report on Tuesday, August 11th. Four research analysts have rated the stock with a Strong Buy rating, thirty have issued a Buy rating, nine have assigned a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $244.19.

SpaceX Stock Up 1.9%

Shares of SpaceX stock opened at $147.49 on Friday. The stock has a fifty day moving average price of $149.40. SpaceX has a 12-month low of $104.83 and a 12-month high of $225.64. The company has a market cap of $1.94 trillion and a price-to-earnings ratio of -1,638.78. The company has a debt-to-equity ratio of 0.29, a quick ratio of 4.99 and a current ratio of 5.12.

SpaceX (NASDAQ:SPCX - Get Free Report) last issued its quarterly earnings data on Tuesday, October 20th. The company reported $0.35 EPS for the quarter, beating the consensus estimate of $0.10 by $0.25. The firm had revenue of $14.57 billion for the quarter. During the same period last year, the business posted ($0.36) earnings per share. The company's revenue was up 161.4% on a year-over-year basis. As a group, sell-side analysts expect that SpaceX will post 0.13 earnings per share for the current fiscal year.

Insider Activity

In related news, COO Gwynne Shotwell sold 342,170 shares of the stock in a transaction on Tuesday, September 22nd. The stock was sold at an average price of $153.57, for a total transaction of $52,547,046.90. Following the sale, the chief operating officer directly owned 2,472,035 shares of the company's stock, valued at $379,630,414.95. This trade represents a 12.16% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Hedge Funds Weigh In On SpaceX

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Syntax Research Inc. bought a new position in SpaceX in the second quarter worth approximately $26,000. Atwood & Palmer Inc. bought a new stake in shares of SpaceX during the 2nd quarter valued at $29,000. PayPay Securities Corp bought a new stake in shares of SpaceX during the 2nd quarter valued at $30,000. Marquette Asset Management LLC bought a new stake in shares of SpaceX during the 2nd quarter valued at $32,000. Finally, Hickory Point Bank & Trust purchased a new stake in shares of SpaceX in the 3rd quarter worth $30,000.

More SpaceX News

Here are the key news stories impacting SpaceX this week:

• Positive Sentiment: Strong earnings and AI growth supported the rebound. SpaceX reported third-quarter revenue of $14.58 billion, up 161% year over year, and earnings per share of $0.35 versus analysts’ $0.10 estimate. Its AI segment reportedly generated $431 million in net income, helping offset losses in the launch business. Fantastic News for SpaceX Stock Investors
• Positive Sentiment: Analyst sentiment improved sharply. PhilipCapital upgraded SpaceX from “Sell” to “Buy” and raised its price target from $75 to $250. Bank of America also lifted its target to $275, citing stronger growth prospects and Starship milestones. SpaceX Just Scored a Double Upgrade
• Positive Sentiment: Wireless ambitions broaden the growth story. Reports that SpaceX is seeking access to at least 80,000 U.S. cell sites suggest Starlink could evolve into a nationwide wireless carrier, potentially creating a major new revenue stream. The news pressured telecom stocks while benefiting tower owners. SpaceX Seeks Access to 80,000 US Cell Sites
• Neutral Sentiment: A potential Tesla NASDAQ: TSLA merger remains speculative. Elon Musk called the combination a “good idea,” but valuation, conflicts of interest, shareholder approval, antitrust review and Tesla’s China operations could delay or prevent a transaction. SpaceX-Tesla Merger Chatter
• Negative Sentiment: Funding and cash-burn concerns remain significant. SpaceX reportedly burned more than $9.9 billion in free cash flow during the quarter and is raising approximately $40 billion of debt at relatively high interest rates to finance AI and other expansion plans. SpaceX $40 Billion Debt Deal
• Negative Sentiment: Execution and reputational risks could limit upside. The launch division was unprofitable because of heavy research spending, while reports of continuing Starlink restrictions in Ukraine could threaten government relationships and future contracts. In addition, upcoming insider share unlocks may increase supply. Ukraine Says Starlink Restrictions Remain

About SpaceX

Space Exploration Technologies Corp., commonly known as SpaceX, is a privately held aerospace company founded in 2002 by Elon Musk. The company develops and operates launch vehicles and spacecraft designed to reduce the cost of access to space and support commercial, government and scientific missions.

SpaceX’s principal products and services include the Falcon 9 and Falcon Heavy rockets, the Dragon spacecraft and the Starlink satellite communications network. Falcon rockets are used to launch satellites, cargo and crew, while Dragon spacecraft support transportation to and from low Earth orbit.

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