Pivotal Research Group analyst Jeffrey Wlodarczak said SpaceX’s investment case depends almost entirely on solving a major engineering bottleneck: Starship’s reusability. According to Sina Finance, he said a single Starship would need to complete 20 to 50 flights with low-cost, fast turnaround maintenance and redeployment for SpaceX to reach a much higher valuation.
Wlodarczak initiated coverage of SpaceX with a Buy rating and a $220 price target. He said the opportunity includes Starlink gaining a meaningful share of the wireless industry and building a dominant position in space, where other companies would have to pay SpaceX to enter.
He added that investors are focused on xAI, the Colossus supercomputing cluster, and Starlink user penetration, but said those businesses depend on Starship succeeding. SpaceX shares have rebounded from their IPO low and trading sentiment has generally stabilized.
The stock was last at $154.15, up $6.20, or 4.19%, in intraday trading at 12:52 p.m. U.S. Eastern Time. It had rebounded from an intraday low of $104.83 on August 3 and closed at $147.95 on September 4. SpaceX reached an all-time high of $225.64 shortly after its June listing.
The company’s second-quarter results drew mixed reactions. Its first earnings report as a public company showed a large loss, while second-quarter capital expenditures totaled $18.4 billion, far above analysts’ expectations of about $6 billion. SpaceX also did not provide specific 2026 guidance.
Even so, Wall Street remains broadly positive. About 80% of sell-side analysts rate SpaceX a Buy or Strong Buy. Bank of America analyst Ronald Epstein said high capital spending and questions about how SpaceX will monetize artificial intelligence and Starlink mobility services have weighed on the stock, but he became more constructive on the company’s competitive position after the second-quarter report.
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