Shares of Space Exploration Technologies Corp. (SPCX) have retreated nearly 40% from the record high of $225.64 reached on June 16, but UBS believes the recent pullback presents a buying opportunity ahead of the company's 13th Starship launch on Thursday, July 16. The brokerage maintained a 'Buy' rating with a $210 price target, implying upside of over 54% from the stock's Tuesday closing price of $136.08, and said a successful mission could validate several key technologies and act as a positive catalyst. At the time of writing on Wednesday afternoon, SPCX stock was down around 2% at $133.43, slipping below its $135 initial public offering price for the first time and extending losses to a fourth consecutive session.
UBS Maintains Buy Rating with $210 Price Target Ahead of Flight 13
UBS maintained a 'Buy' rating on SpaceX with a $210 price target, implying an upside of over 54% from the stock's Tuesday closing price of $136.08. The stock ended Tuesday down 39.69% from its record high of $225.64, which it hit on June 16. "SpaceX has made multiple hardware and software upgrades since the last flight," UBS wrote in a note on Wednesday, according to a report in CNBC. The brokerage added, "This flight would demonstrate multiple new milestones and in our view be a positive for the stock."
Flight 13 to Test Engine Relights, Starlink V3 Deployment, and Heat Shield Performance
Thursday's Starship Flight 13 will serve as a key test of technologies that SpaceX plans to rely on as it scales up its launch operations. UBS said the mission is designed to evaluate booster and in-space Raptor engine relights, deploy Starlink V3 satellites and further advance the vehicle's heat shield system. A successful flight would also reinforce UBS' projections for four commercial launches in 2026 and 1,588 flights by 2031. "Flight 13 is important because it is intended to validate some of the key capabilities required for this launch ramp, including booster engine relight reliability, in-space Raptor relight, Starlink V3 satellite deployment, and continued heat shield development," UBS said.
Wall Street Analysts Rate SPCX Predominantly Buy with $240 Average Target
UBS' bullish stance is in line with broader Wall Street sentiment. According to data from Koyfin, 27 of the 32 analysts covering SPCX rate it 'Buy' or 'Strong Buy,' while four rate it 'Hold' and one rates it 'Sell.' The 12-month average target on the stock is $240, representing a potential upside of around 76% from Tuesday's close. On Stocktwits, retail sentiment around SPCX was 'bearish,' while message volume was 'extremely low' at the time of writing. The SPCX stock has fallen 11.63% year-to-date. By comparison, the Procure Space ETF (UFO) has gained nearly 17% over the same period, while the Tema Space Innovators ETF (NASA) has edged up 0.8%.
FAQ
Why did SPCX stock fall nearly 40% from its June peak?
SPCX shares retreated nearly 40% from the record high of $225.64 reached on June 16. The stock ended Tuesday at $136.08, down 39.69% from that peak, and slipped below its $135 initial public offering price for the first time on Wednesday.
What is UBS' price target for SPCX stock?
UBS maintained a 'Buy' rating on SpaceX with a $210 price target, implying an upside of over 54% from the stock's Tuesday closing price of $136.08. The brokerage said a successful Flight 13 mission could validate several key technologies and act as a positive catalyst for the stock.
What will SpaceX's Flight 13 test on Thursday, July 16?
Flight 13 is designed to evaluate booster and in-space Raptor engine relights, deploy Starlink V3 satellites, and further advance the vehicle's heat shield system. UBS said the mission is intended to validate key capabilities required for SpaceX's launch ramp, including booster engine relight reliability, in-space Raptor relight, Starlink V3 satellite deployment, and continued heat shield development.
