Tech bull Dan Ives of Wedbush initiated coverage of SpaceX (SPCX) with an Outperform rating and a $190 price target, weighing in on a stock that has whipsawed investors in the three weeks since its record-setting initial public offering.
Ives sees SpaceX as a player in the hyperscaler wars too
Ives and the Wedbush team see SpaceX as a three-way bet on launch, connectivity, and artificial intelligence. SpaceX is “one of the most differentiated assets within the tech market,” Ives wrote, and is “well-positioned to become a major hyperscaler with its vertically integrated platform across connectivity, launch, and AI infrastructure.” The $190 target implies around 12% upside from Tuesday’s close of $171, but the stock dipped in early trade Wednesday. Today’s weakness aside, Ives built his bull case on the three business lines separately.
Starlink, the satellite broadband unit, remains the profit engine, with roughly 12 million subscribers as of June 5 and average revenue per user near $66. He argued the company holds less than 1% of the global telecom and broadband market, leaving a long runway. The launch business, by contrast, he described less as a profit pool than as an internal cost center (though efficient) that makes everything else possible.