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

Odaily Planet Daily News: Bank of America reiterated its "Buy" rating on SpaceX after its earnings report, maintaining a price target of $235, approximately 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 estimates that SpaceX's AI business revenue in 2026 will approach $24.5 billion, accounting for more than half of the company's total revenue forecast. Meanwhile, revenue from the partnership with Anthropic has been contributing since May this year, and the computing collaboration with Google is expected to commence in October this year. Bank of America has therefore raised its earnings 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 significant negative free cash flow over the next few years. It forecasts: free cash flow of -$43.6 billion in 2026; -$45.4 billion in 2027; and -$37.4 billion in 2028. (The Street)