SpaceX Stock Near IPO Price as BofA Initiates Buy on 'Launch Leadership'

SpaceX shares have slipped to near their IPO price, dipping below $140 amid a 4.3% decline, as Bank of America (BofA) analyst Ron Epstein initiated coverage with a Buy rating and a $235 price target. The target, derived from a long-term discounted cash flow model extending to 2045, hinges on SpaceX's 'launch leadership' and speculative ventures like space-based data centers. Epstein dismissed skepticism around orbital computing, citing Starlink's 10,000-satellite network as a precedent for scalable space infrastructure. He emphasized that reduced launch costs—from $10,000–$20,000/kg pre-Falcon 9 to $2,000/kg with Falcon 9, $1,000/kg with Falcon Heavy, and potentially $50–$100/kg with full Starship reusability—could unlock 'markets people aren't even thinking of.' Bullish signals include Google and Anthropic terrestrial compute deals at unexpected prices, Starlink's profitability, and progress in mobile connectivity. Epstein expects the 13th Starship test flight to show directional progress, not immediate milestones.

Bora Yalın Note: SpaceX's cost-reduction strategy is fueling 'risk-on' dynamics in the space sector. However, the stock's technical weakness underscores the need for investors to anchor decisions in fundamentals. Projects like orbital data centers may attract capital flows long-term, but near-term performance remains tied to execution risks. BofA's 2045 outlook signals a patient, structural opportunity rather than a short-term rally.