Key Takeaways:
Wedbush analyst Dan Ives initiated coverage of SpaceX with a Buy rating and a $190 price target, calling the rocket company "much more of an AI play" than a space business.
"SpaceX's Starlink network is becoming the backbone of global AI infrastructure, and we believe the market is undervaluing this opportunity," Ives, who covers emerging technology at Wedbush, said.
The $190 target implies a valuation that Ives said could make SpaceX "one of the best AI plays" in the market. He cited Starlink's expanding enterprise customer base and the Starship program's potential to reduce launch costs as the primary drivers of his bullish thesis.
Ives's initiation is one of the first formal Wall Street coverage calls on SpaceX, which remains the most valuable private startup globally. The analyst noted that SpaceX and Tesla shares have been "trading like twins" in secondary markets, suggesting investors view both companies through the lens of AI infrastructure rather than their respective industries.
The Buy rating represents a contrarian view relative to some secondary market participants who have flagged concerns about the capital intensity of the Starship program. Ives argued that SpaceX's vertical integration — spanning rocket manufacturing, satellite production, and consumer terminal distribution — gives it a structural cost edge over publicly traded peers such as Rocket Lab USA Inc.
For holders of SpaceX shares on secondary markets, the Wedbush initiation provides a formal valuation benchmark from a bulge-bracket firm. The next major catalyst for the company is the next Starship test flight, expected as soon as August, which will demonstrate orbital refueling capability required for NASA's Artemis missions.
This article is for informational purposes only and does not constitute investment advice.
