Bank of America Raises $SPCX Price Target to $275 From $235, Implying About 73% Upside

Bank of America raised its price target on $SPCX to $275 from $235 on Oct. 22 and kept its Buy rating. The new target implies upside of about 73% from the $159.31 share price cited in the report.
The move follows SpaceX's first quarterly profit, with $4.4 billion in net income in the three months through September. Earnings came in at $0.35 per share versus the $0.10 consensus, while revenue rose 161.4% from a year earlier to $14.58 billion, about $1.9 billion above expectations, according to the bank's research note.
The Super Intelligence segment, SpaceX's AI arm, generated $7.6 billion in revenue and posted its first operating profit, overtaking Starlink. Cloud agreements, the August purchase of Cursor, and wider Grok adoption all played a part. President Gwynne Shotwell called Starlink "another standout quarter driven by continued growth across our consumer, enterprise, and government businesses."
On the earnings call, Elon Musk revealed that the boards of SpaceX and Tesla had formed separate committees to study a possible combination of the two companies. Musk said a merger would be a good idea but is not a certainty.
Wall Street remains split. The consensus rating stands at moderate buy with an average target of $244.19, according to MarketBeat, though four firms carry sell ratings. Goldman Sachs raised its target to $230 from $220 on Oct. 6, while HSBC opened coverage in July with a hold rating and a $115 target.
Risks include spending and share supply. Capital spending reached $19.6 billion in the third quarter, with management guiding to $35 billion to $40 billion in the fourth. Insiders became eligible to sell up to 1.3 billion shares on Oct. 22, with another time-based release set for Oct. 26. Musk cannot sell until 366 days after the June 12 IPO.
CFO Bret Johnsen guided to $33 billion to $37 billion in revenue for the first quarter of 2027.