SpaceX’s Transformative Catalysts Are Closer Than They Appear, Says Evercore – Sees 87% Upside Potential

• Evercore expects investors to focus less on SpaceX’s Q3 results than on events that will drive medium-term estimates into 2027.
• The firm anticipates successful reuse of Starship to be demonstrated within the next few flights.
• It expects SpaceX to close out full-year 2026 with $104 billion in annualized recurring revenue.

SpaceX (SPCX) was on investors’ radar on Friday, after the end-to-end space firm received another bullish Wall Street call, with Evercore raising its price target on the stock, citing ‘transformative catalysts’ next year.

Analyst Kutgun Maral raised SpaceX’s price target to $275 from $230 and maintained an ‘Outperform’ rating, according to The Fly. This implies a roughly 87% upside from current levels.

SPCX shares were down 1.5% at the time of writing and have slumped about 9% so far this week, marking their biggest weekly decline since mid-July.

Evercore Highlights Starship Developments

Maral expects investors to focus less on SpaceX’s third-quarter (Q3) results than on developments that will drive medium-term estimates and sentiment through the year and into 2027.

One key development to watch is Starship, SpaceX’s largest reusable rocket designed to carry heavy payloads into orbit. SpaceX recently completed the 14th test flight, and while there were issues related to propulsion, the trial met its primary goal: Starship reaching orbit and deploying all Starlink V3 satellites.

Evercore believes successful rocket reuse could be demonstrated within the next few flights.

Evercore Raises EBITDA Estimates Despite High CAPEX

Evercore expects SpaceX to close out full-year 2026 with $104 billion in annualized recurring revenue, slightly above the company’s $100 billion target, according to Investing.com. It also raised its FY2027 AI computing capacity forecast to 6.5 gigawatts (GW) from 5.7 GW.

SpaceX spent more than $18 billion in the second quarter (Q2), primarily on AI infrastructure. Despite the heavy spending, Evercore raised its FY2029 adjusted earnings before interest, tax, depreciation and amortization (EBITDA) forecast to $266 billion from $210 billion.

Starlink, Potential Tesla Merger In Focus

SpaceX recently agreed to acquire Grain Management’s nationwide portfolio of 800 MHz wireless spectrum, in a bid to take on traditional telecom carriers. The acquisition could be particularly useful for providing mobile coverage over long distances and inside buildings. 

The update was met with bullish takes on Wall Street, with Pivotal Research analyst Jeffrey Wlodarczak stating that SpaceX has effectively created a ‘legitimate’ new low-cost wireless carrier.

With talks of a potential merger between Tesla and SpaceX, 2027 is gearing up to be a pivotal year for the company. Evercore said SpaceX’s “transformative catalysts” are “closer than they appear.”

Retail’s Take On SPCX

Retail sentiment surrounding SPCX on Stocktwits remained ‘bearish’ over the past 24 hours. SPCX was also among the top trending tickers at the time of writing.

The stock is about 9% higher than its IPO price of $135.

Also read : Tesla’s Flying Roadster Fuels SpaceX Merger Speculation, But Analysts Question Earnings Impact

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