Analysts Push SpaceX Target to $500 Following Strong Third Quarter
Wall Street firms lifted their stock price estimates after the company posted a sharp increase in revenue and profit.
By Isabella Morales ·
Stocks for the space firm jumped higher after a major earnings release. Wall Street analysts responded quickly by raising their price targets.
On October 20, after the market closed, the company reported its third-quarter results for 2026. Revenue hit $14.6 billion. That figure represents a 161 percent increase from the same time last year. It also beat analyst forecasts, which had projected revenue near $12.7 billion. The firm posted a net profit of $4.4 billion. This is a turnaround from a loss in the prior year. Adjusted EBITDA reached $8.8 billion.
The company's AI division is now its biggest earner. It brought in roughly $7.6 billion. That is a nearly 830 percent jump year-over-year. The connectivity business also grew. It posted $5.2 billion as Starlink added subscribers. The total user base now sits at 13.6 million.
During the call, CEO Elon Musk and CFO Bret Johnsen gave guidance for the next quarter. They projected revenue of $33 billion to $37 billion for the first quarter of 2027. Analysts had modeled roughly $22 billion. Management also outlined capital spending plans. They plan to spend $35 billion to $40 billion in the fourth quarter. This money will fund AI compute infrastructure in places like Memphis and Southaven.
The company is also looking at future partnerships. Special committees have been formed to explore a possible combination with Tesla. The firm also reported on Starship's recent orbital success. It is also moving forward with V3 satellite deployment and Grok Bot adoption.
Following this report, several banks updated their outlooks. JPMorgan more than doubled its target to $500 from $240. It maintained an Overweight rating. Cantor Fitzgerald lifted its target to $345 from $246. Barclays raised its target to $300 from $254. Citi increased its target to $240 from $200. UBS moved its target to $230 from $210. TD Cowen raised its target to $224 from $200.
Morgan Stanley held an Overweight rating. It set a $300 target. Wells Fargo moved its target to $274 from $214. Clear Street adjusted its target to $248 from $217. Analysts pointed to the strong quarter. They also cited AI compute expansion, Starlink progress, and Starship milestones. These factors are driving higher long-term growth.
Shares closed at $147.79 on October 20. On October 21, they jumped roughly 8 percent in early trading. The average analyst price target has moved higher. This reflects more conviction in the company's trajectory across launch, connectivity, and the Super Intelligence business. Spending remains a point of focus.
Source: Teslarati
