Argus Upgrades SpaceX to Buy on Massive Revenue Growth Outlook
Argus Research upgraded SpaceX (SPCX) to Buy with a $160 target, arguing that rapid revenue growth could justify a high valuation despite large AI infrastructure and other capital spending. SpaceX posted Q2 revenue of $7.8B (up 92% year over year) but a larger loss, while Argus expects the company’s revenue run rate to reach about $100B by end-2026 and around $110B in 2027. The bullish view hinges on translating AI investments into sustained revenue, with key risks including steep spending, potential insider-share liquidity expanding the tradable float, and whether the 2027 revenue targets can support roughly a 20x forward revenue multiple. Watch AI infra utilization, capital spending, operating losses, and progress toward the revenue milestones; the lock-up schedule could act as a near-term catalyst.