Key Highlights

  • Evercore ISI initiated coverage with a $230 price target, indicating about 65% upside from the $139.14 close.
  • SpaceX shares have fallen nearly 7% recently and remain down more than 38% from the $225.64 peak.
  • The firm projects revenue growth at 106% and EBITDA expansion at 157% through 2028, with operating margins expected to rise from 35% to 69%.

SpaceX is set to conduct another test flight of its Starship system, while Evercore ISI has launched coverage with a $230 target price. The dual development is poised to affect the aerospace launch services market, satellite connectivity providers and emerging AI hardware firms, as investors weigh the company’s growth trajectory against recent share weakness.

What Happened

The Texas‑based launch site will see a Starship test mission aimed at validating the latest vehicle configuration. This effort follows a previous launch where the Super Heavy booster experienced heat damage and engine reignition issues, resulting in the loss of the booster. Evercore analyst Kutgun Maral highlighted SpaceX’s vertically integrated approach and its dominant position in low‑cost reusable launch capability in the new analysis.

Evercore’s projection of revenue compounding at 106% and EBITDA at 157% through 2028 suggests a significant upside for the company, which could lift related equities in satellite broadband, orbital computing and AI accelerator markets. Wider operating margins, forecast to expand from 35% to 69%, reinforce expectations of profitability gains that may benefit suppliers and partners across the space value chain.

What’s Next

The upcoming Starship test flight will serve as a stepping stone toward the first operational payload slated for the latter half of the year. Success could accelerate deployment of Starlink broadband services and bolster the timeline for orbital computing initiatives, which are not expected to be fully tested until 2029 or later. Meanwhile, SpaceX’s Grok and Cursor AI offerings must secure market share against established enterprise competitors, a factor that will likely influence future coverage adjustments and sector sentiment.

This article is for informational purposes only and does not constitute financial advice. Please consult a licensed financial adviser before making investment decisions.