• Susquehanna raises its SpaceX (SPCX) price target by $29 to $173, implying just 1.1% upside from the last close.
  • The move follows a sharp rally in SPCX shares, fueled by Starship progress and bullish calls from other banks.
  • Without an accompanying rating change, the hike may signal a valuation reset rather than a shift to bullishness.

Susquehanna Boosts SpaceX Target

Susquehanna has raised its price target on SpaceX (Nasdaq: SPCX) to $173 from $144, according to a headline that crossed trading desks Thursday. The $29 increase — a 20.1% bump — comes amid renewed investor enthusiasm for the rocket maker and satellite operator, but the new target sits only about 1.1% above the stock’s October 5 close of $171.09. That slim premium suggests the revision is more of a valuation catch-up than a bold call for further gains.

The firm’s rating on the shares was not immediately clear. Susquehanna downgraded SpaceX to Underperform on August 7, and a target cut to $144 was later reported. A higher target does not necessarily mean an upgrade. Without the accompanying rating or rationale, the headline alone leaves open whether Susquehanna’s investment stance has actually changed. A spokesperson for Susquehanna did not respond to a request for comment.

Rally Puts Focus on Fundamentals

The target increase lands after a dramatic run in SpaceX shares. The stock jumped almost 8% on October 5, rebounding roughly 58% from an early-August low. Morgan Stanley (MS) added fuel to the rally with an October 4 note that recommended buying the stock, reiterated a $300 target, and pointed to AI product releases, new cloud-computing contracts, and progress on the Starship program.

That bullishness contrasts with Susquehanna’s more cautious history. The firm initiated coverage on June 23 — just days after SpaceX’s June 12 IPO — with a Neutral rating and a $170 target. The subsequent downgrade to Underperform and the cut to $144 reflected concerns that have not been publicly detailed. If the $173 target is accurate, it reverses that cut and edges above the original target, but it still sits well below Morgan Stanley’s view.

The stakes are high. SpaceX reported $7.814 billion in revenue for the quarter ended June 30, up 92% year over year. Adjusted EBITDA more than doubled to $3.538 billion, though the company still posted a net loss of $541 million. Capital expenditure totaled $18.369 billion in the quarter, including $15.828 billion for AI infrastructure. The company ended the period with roughly $100 billion in cash and marketable securities and a backlog of $47.5 billion.

Starship Milestone, But Risks Remain

Operationally, SpaceX notched a key milestone on September 28 when Starship reached orbit and deployed 26 next-generation Starlink satellites. However, an engine failure shortened the planned ten-hour mission to three hours, a reminder that technical risks persist. The company also recently launched a crewed NASA mission and sent Google (GOOGL) AI chips into orbit, according to CNBC (VSNT).

Starlink continues to grow, with 12 million subscribers as of June 30, but international expansion faces hurdles. Namibian regulators rejected Starlink’s licensing appeal, citing local ownership requirements, Reuters (TRI) reported. Such barriers could temper the satellite broadband unit’s global ambitions.

SpaceX’s growing AI segment, which includes cloud-computing contracts with Google and Anthropic, is another wildcard. The unit generated $2.561 billion in revenue last quarter, up 247%, but posted a $1.257 billion operating loss. Meanwhile, the connectivity segment delivered $1.656 billion in operating income, underscoring the uneven profitability across the company.

What to Watch

Investors will parse the next Starship test and third-quarter earnings, expected in late October, for signs of whether SpaceX can translate rapid growth into sustainable profits. Morgan Stanley views a successful upper-stage catch as a potentially major positive event, though that capability remains unproven. For now, Susquehanna’s higher target is a reminder that analysts are playing catch-up to a stock that has already run hard. Without a rating change, the move may not signal a new wave of bullishness — just a higher bar for the shares to clear.

Correction: An earlier version of this article misstated the date of Susquehanna’s downgrade to Underperform. It was August 7, not August 17.