JPMorgan has more than doubled its price target on SpaceX (SPCX), betting that a fast buildout of computing power will push the company’s revenue into the hundreds of billions of dollars.
Analyst Doug Anmuth raised his target on SpaceX to $500 from $240 and kept an Overweight rating after the company’s third-quarter results, reports Yahoo Finance.
Anmuth also more than doubled his estimates for 2027 and 2028.
JPMorgan now expects SpaceX to have 10 gigawatts of compute capacity by the end of 2027.
The bank models $254 billion in revenue for 2027, which would put SpaceX on pace for an annualized revenue run rate of about $400 billion a year by the end of that year.
That is still below management’s own target range of $500 billion to $1 trillion.
The new $500 target is based on 20 times JPMorgan’s 2028 earnings per share estimate of $24.41 under generally accepted accounting principles (GAAP).
SpaceX shares rose 8.10% in premarket trading.
Anmuth says SpaceX still has to deliver, including building out compute, raising a lot of capital and continuing to see strong demand.
He also pointed to comments from Elon Musk that SpaceX and Tesla (TSLA) have formed special committees to discuss a possible merger.
Any deal would need shareholder approval and could face regulatory scrutiny.
Last month, The Daily Hodl reported that Morgan Stanley had reaffirmed its buy rating and $300 price target on SpaceX.
Follow us on X, Facebook and Telegram
Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any assets including cryptocurrencies, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
The post JPMorgan Doubles SpaceX Price Target to $500, Sees $254,000,000,000 in Revenue Next Year appeared first on The Daily Hodl.