BofA estimates SpaceX could spend about $6 billion on radio access network equipment.
- BofA said the spending could benefit telecom equipment suppliers Nokia and Ericsson.
- Bernstein raised its SpaceX price target to $268 from $248 and maintained an ‘Outperform’ rating.
- Bernstein now forecasts $424 billion in revenue for 2028.
SpaceX (SPCX) drew fresh Wall Street attention on Tuesday as Bank of America added the end-to-end space and AI company to its list of top investment ideas, while its latest Falcon 9 rocket launch expanded the Starlink satellite network.
BofA added SpaceX and Fox Corp. (FOXA) to its ‘US 1 List,’ which features the firm’s best investment ideas, while removing RenaissanceRe (RNR), according to The Fly.
At the time of writing, SPCX shares were up 1% in pre-market trading.
Falcon 9 Launches Continue As Starship Takes Shape
On Tuesday, SpaceX launched 27 Starlink satellites from California aboard a Falcon 9 rocket. The launch comes as SpaceX gradually winds down Falcon launches to focus on the much bigger Starship. The company has already ended Falcon 9 Starlink launches from Florida, although launches continue from California.
Starship’s last journey took place last month when Flight 14 reached orbit and deployed 26 next-generation Starlink satellites. With Flight 14 facing propulsion issues, the upcoming Flight 15 is expected to attempt to catch both the booster and the spacecraft, a major step toward full reusability.
BofA Sees $6B Opportunity In Starlink Expansion
Separately, BofA highlighted SpaceX’s reported plans to secure access to more than 80,000 U.S. cell sites as it looks to expand beyond satellite internet and build a nationwide mobile network.
The brokerage estimates SpaceX could spend about $75,000 per site on radio access network (RAN) equipment, bringing total spending to around $6 billion.
BofA believes this could benefit telecom equipment suppliers Nokia (NOK) and Ericsson (ERIC).
Bernstein Highlights Importance Of Starship Reusability
Late Monday, Bernstein raised its SpaceX price target to $268 from $248 and maintained an ‘Outperform’ rating. The firm expects stronger growth from SpaceX’s AI computing business and enterprise connectivity services.
Bernstein raised its revenue forecast to $424 billion in 2028 and believes reusable Starship rockets will be critical to SpaceX’s longer-term plans to put data centers in orbit.
Retail’s Take On SPCX
Retail sentiment surrounding SPCX on Stocktwits turned ‘bullish’ from ‘extremely bullish’ a day earlier, amid ‘high’ message volumes.
The stock has gained about 9% over its IPO price of $135.
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