SpaceX stock has wavered this month after hitting the crucial resistance at $158. This consolidation has coincided with share unlocks and the upcoming Starlink v3 test. It was trading at $148.03 on Friday, down sharply from the all-time high of $225. So, is this a golden opportunity to buy the company?
Analysts are bullish on SpaceX stock
Top analysts tracking SpaceX are highly bullish on the company because of its diversified business model. Many of them believe that its ongoing challenges, including cash burn, are temporary.
The average estimate among analysts is that the stock will jump to $227 in the next 12 months. This target is about 53% above the current level. The most bullish analyst believes that the stock will jump to $800, up by 440% from the current level.
Timothy Hiran, an Oppenheimer analyst, believes that the stock will jump to $280, while Ryan Koontz of Needham, sees it rising to $250. Macquarie has also set a target of $250, meaning that it needs to jump by about $100 from the current level.
Elon Musk is investing Across all the businesses
Recent announcements show that Elon Musk is investing across all parts of SpaceX, a move aimed at gaining market share as competition rises. The last quarter showed that the space business had a capital expenditure of $1.17 billion, while the connectivity and AI businesses spent $1.37 billion and $15.8 billion, respectively.
A good example of this is the planned test of the Starlink v3 next week. This version will lead to an improved service as the company seeks to gain market share globally. Starlink now has over 12 million customers who are paying a fee every month.
In a statement this week, Musk predicted that Grok’s capabilities will match or be better than those offered by other companies like Anthropic and OpenAI. This statement comes at a time when the platform is struggling as competition rises and its model remains under pressure. Data shows that Grok’sperformance lags other models by far.
Growth expected to soar
Analysts believe that SpaceX has more room for growth, especially in its data center business. It recently inked a $1.1 billion a month deal. This is on top of deals with other companies like Google, Reflection AI, and Anthropic. As a result, some top companies Goldman Sachs and Morgan Stanley believes that the revenues will jump to over $1 trillion in the next few years.
The average estimate among analysts is that its annual revenue will jump to $44.8 billion this year, with the most bullish one having a target of $51 billion. This surge will then extend to over $103 billion next year.
To be clear, its free cash flow will be affected by the massive investments. Nonetheless, these investments will likely be worth it in the long run, as we experienced with Tesla.
SpaceX stock technical analysis
The two-hour chart shows that the SPCX stock has remained inside a narrow range this month. A closer look shows that it has formed an ascending triangle pattern, a common continuation sign in technical analysis.
The stock has remained above the 50-period moving average and the Supertrend indicator. Therefore, in the long-term, the stock will likely continue surge, potentially to the psychological level of $200. Over time, the stock will likely surge to $300 and above.