Wedbush analyst Dan Ives has initiated coverage on the newly public Space Exploration Technologies Corp. (NASDAQ:SPCX) with a highly bullish outlook, betting on the company’s emerging “demand flywheel” just as the stock prepares for massive passive capital inflows from its upcoming Nasdaq-100 inclusion on July 7.
However, Wedbush’s $190 price target arrives amidst a fierce Wall Street debate, highlighted by Evercore founder Roger Altman‘s recent warning that “nobody understands” how to accurately value the volatile aerospace and AI giant.
Driving The Flywheel
In a note to clients, Wedbush assigned an Outperform rating to SPCX, framing the company as a dominant, vertically integrated platform across connectivity, launch, and AI infrastructure.
Ives emphasized that Starship launches are leading to a powerful “demand flywheel and increasing deal flow for its Colossus clusters,” with the Starlink satellite network serving as the primary “profitability driver,” backed by 12 million global subscribers.
Wedbush’s Sum-of-the-Parts valuation implies an enterprise value of approximately $2.48 trillion based on FY28 estimates.
This fundamental momentum coincides with a major technical tailwind. Nasdaq confirmed that SpaceX will join the Nasdaq-100 Index before trading begins next Tuesday. As a result, massive index-tracking funds will be forced to rebalance their portfolios, triggering heavy passive buying.
The Valuation Conundrum
Despite Wedbush’s optimism, other institutional voices urge caution. Speaking on CNBC, Evercore Senior Chairman Altman warned investors to brace for sharp swings.
“I don’t think anybody understands, at least I don’t, how to value companies like SpaceX or Anthropic,” Altman stated, noting that their unprecedented scale and uncertain cash flows defy traditional financial math.
Reinforcing this skepticism, Third Bridge sector analyst John Conca told Schwab Network that aggressive multi-year subscriber projections are “unrealistic” due to near-term capacity constraints.
SPCX Gains Since Listing
Shares of SPCX have gained 13.91% since its listing on June 12. It was up 9.45% over the last five sessions, and it rose 4.06% to $170.86 apiece on Tuesday. SPCX was 1.84% higher in premarket on Wednesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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