Another Wall Street analyst is getting on board the SpaceX trade, just as the stock hits a weak moment.
Shares shed another 4% on Monday, hitting another all-time low and dipping below $140
The stock debuted at $150 in mid-June, and SpaceX’s $135 IPO price is now perilously close. BofA securities senior analyst Ron Epstein is the latest bull on SpaceX, with the bank initiating coverage last week with a Buy rating and a $235 price target. That target sits well above Monday’s sub-$140 print and is derived from a long-term discounted cash flow model blending base, bull and bear cases out to 2045.
While SpaceX’s “launch leadership” frames the SpaceX bull case, Epstein also leaned into one of the more speculative pieces of that thesis: space-based data centers. Orbital data centers are not “some massive thing floating around out there with thousands and thousands of GPUs in it,” he said in an interview with Yahoo Finance, calling the concept a misnomer. “It’s distributed orbital compute,” Epstein said. “I haven’t really come across anybody that I trust in the engineering world that would say, ‘Hey, this is impossible. It’s an engineering challenge that needs to be solved.’ ” A trained aerospace engineer himself, Epstein pointed to Starlink as precedent, noting that over 10,000 interconnected satellites now form “an effective laser internet in space” that skeptics once deemed unworkable.