SpaceX (SPCX) stock is pushing higher on Oct. 23 after senior PhilipCapital analyst Glenn Thum double-upgraded the space infrastructure and artificial intelligence (AI) company to “Buy.” In his research note, Thum assigned an aggressively revised $250 price target to SPCX, indicating potential upside of more than 65% from current levels.
His bullish call arrives as SpaceX shares are being hit amid a broader AI rout, currently down about 12% versus their recent high.
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www.barchart.comWhat Made PhilipCapital Upgrade SpaceX Stock?
Thum’s change of heart centers on SpaceX’s ability to charge more for scarce computing capacity.
“New cloud services agreements came online at higher rental prices and Cursor added US$608mn from mid-August,” he told clients.
For investors, the appeal extends beyond rapid sales growth. Higher-margin cloud revenue helped the giant’s AI division become profitable, suggesting additional capacity can lift earnings as well as expand the business.
SpaceX earned $0.45 per share in its fiscal Q3 on $14.58 billion in revenue. Both figures came in above Wall Street estimates. The quarterly release brought stronger evidence that demand is translating into financial returns, the analyst pointed out.
Why Else Are SPCX Shares Attractive?
Thum also sees attractive economics behind SpaceX’s infrastructure buildout: contracts are renewing at higher prices per watt, and new capacity pays back in under a year. That potentially shortens the period between heavy investment and recovering its cost.
Additionally, the analyst dubbed connectivity as another earnings driver, with aviation installations and Starshield contracts helping enterprise and government revenue climb 91% year-over-year.
Thum admitted that power and cooling constraints could delay compute expansion, but said strong price and capacity economics will outweigh those bottlenecks.
SPCX stock’s relative strength index (RSI) sits in the mid-40s, signaling massive upside before it hits overbought conditions.
SpaceX Remains Buy-Rated Among Wall Street Firms
Other Wall Street analysts are just as bullish on SPCX shares for the next 12 months.
According to Barchart, the consensus rating on billionaire Elon Musk’s company sits at “Moderate Buy,” with the mean price target of $244 indicating potential for more than a 60% rally in 2027.
www.barchart.com On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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