Bank of America maintains SpaceX price target of $235, approximately 87.5% above the post-earnings reference price

Odaily News: Bank of America reiterated its "Buy" rating on SpaceX after its earnings report, maintaining a price target of $235, roughly 87.5% above the post-earnings reference price of $125.33. Bank of America believes its bullish thesis is no longer primarily based on the rocket launch business, but rather on the AI infrastructure business.

Bank of America projects SpaceX's AI business revenue will approach $24.5 billion in 2026, accounting for more than half of the company's total revenue forecast. Meanwhile, revenue contributions from the partnership with Anthropic began in May this year, while the compute collaboration with Google is expected to commence in October this year. As a result, Bank of America has raised its financial forecasts for the coming years: the 2026 revenue estimate has been raised by approximately 15% to $46.9 billion; the 2027 revenue estimate has been raised by approximately 29% to $100.7 billion; and the 2028 revenue estimate has been raised by approximately 29% to $184.8 billion.

However, Bank of America also expects that as capital expenditures continue to expand, SpaceX will maintain significantly negative free cash flow in the coming years. Its projections are: -$43.6 billion in free cash flow for 2026; -$45.4 billion for 2027; and -$37.4 billion for 2028. (The Street)