Wedbush began formal coverage of Space Exploration Technologies Corp. (SPCX) with an Outperform recommendation and a $190 price target, describing SpaceX as "one of the most differentiated assets within the tech market." The research note frames the company as poised to evolve into a major hyperscaler across connectivity, launch and AI infrastructure.
Analyst Dan Ives identified Starlink as the central driver of SpaceX's profitability. He reported the service had roughly 12 million subscribers as of June 5, 2026, with average revenue per user near $66 across both enterprise and consumer fleets. According to Ives, Starlink is "still in the early innings of penetrating the global telecom and broadband market," where SpaceX currently holds under 1% market share, and the company is progressing on direct-to-device cellular offerings.
Wedbush underscored the strategic importance of Starship's reusability. The firm argued that reusable Starship vehicles lower hardware-related launch costs and create a reinforcing loop that supports higher launch cadence. Each Starship is expected to carry approximately 60 Starlink satellites per launch, compared with 27 per Falcon 9, a step Wedbush called "an incremental driver of its highly profitable broadband connectivity business."
On capital allocation, Wedbush noted SpaceX received approximately $86 billion from its IPO, and that around 20% of those proceeds are directed toward AI infrastructure investments. The report also stated the company is pursuing additional financing to support its AI ambitions.
The $190 price target is built from a sum-of-the-parts valuation based on fiscal year 2028 estimates, producing roughly $2.48 trillion of implied enterprise value. Ives additionally flagged the multi-year potential from compute and AI, observing that AI and compute remain "still in early innings over the next decade," and that they could deliver substantial upside beyond the core Starlink business.
Summary of key details:
- Coverage initiated at Outperform with a $190 price target.
- Starlink: ~12 million subscribers (as of June 5, 2026) and ARPU of about $66.
- Starship: reusable design expected to carry ~60 Starlink satellites per launch, up from 27 per Falcon 9.
- IPO proceeds: approximately $86 billion, with about 20% allocated to AI infrastructure; additional financing being sought.
- Valuation: sum-of-the-parts on FY2028 estimates implies ~ $2.48 trillion enterprise value.