SpaceX's Compute, Starship, Grok Progress to Support Growth, UBS Says

MT Newswires Live02:32

SpaceX (SPCX) is positioned to sustain growth as new computing deals come online, Starship advances toward recovering its ship and booster, and Grok improves its performance and products, UBS said in a note Wednesday.

The brokerage said it believes SpaceX's combination of assets is unique and could create value over time as management executes on these initiatives.

UBS expects new computing deals in Q4 to support growth and sees potential for annual recurring revenue reaching $500 billion to $1 trillion by the end of 2027.

UBS estimates SpaceX will need to spend about $350 billion to reach its 13-gigawatt capacity target. The brokerage said the company's accelerating computing buildout and new cloud deals support its growth outlook.

UBS maintained a buy rating and raised its price target to $230 from $210.

Price: 158.17, Change: +10.38, Percent Change: +7.02

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