New Street Research has initiated coverage of SpaceX (NASDAQ:SPCX) with a 12-month price target of $165 per share, implying potential upside of approximately 22% from the company’s proposed IPO price and valuing the business at around $2.3 trillion following its potential…
quisition of Cursor. Analyst Pierre Ferragu outlined a multi-faceted valuation approach that supports a higher assessment of the company as it prepares for one of the most closely watched stock market debuts in history
Valuation Built on Three Key Frameworks Ferragu said the research firm’s analysis was based on three separate valuation methodologies designed to assess both the current business and its long-term growth potential. The first approach uses a sum-of-the-parts framework, including a discounted cash flow valuation of Starlink and an assessment of how xAI’s value could be enhanced by the proposed Cursor acquisition, its integration with what Ferragu described as a “highly cash-generating telecom business,” and the possibility of gaining direct access to orbital computing capabilities. Within this framework, third-party launch services were viewed as a relatively minor contributor to overall value.
Focus on Long-Term Growth Potential The second valuation method examines where SpaceX could stand by 2030 in terms of revenue generation and growth prospects. Under this scenario, New Street Research applied valuation multiples based on earnings and sales metrics from comparable companies to estimate the company’s future worth. The analysis reflects expectations that SpaceX’s businesses, particularly Starlink and its artificial intelligence initiatives, could continue expanding at a rapid pace over the coming years.