Goldman Sachs raised its SpaceX price target from $220 to $230 while maintaining a Buy rating, prompting CNBC “Mad Money” host Jim Cramer to reconsider the basis for analysts’ earlier valuations. Cramer said the increase suggests those estimates were not simply guesses, though he still does not plan to add SpaceX to the portfolio of the charitable trust he manages. The move also highlights changing growth expectations and continuing disagreement on Wall Street over the company’s value.
Goldman raises its target for a second time
Goldman Sachs was one of the lead underwriters for SpaceX’s IPO in June. Analyst Eric Sheridan began coverage in July with a $205 price target. The bank has since raised its target twice: to $220 on August 5 and now to $230.
Cramer said the $220 target was difficult to justify when SpaceX shares were trading near $120. The stock has since climbed, closing at $171.92 on October 6, according to Google Finance. Goldman’s latest increase changed Cramer’s view of the analysts’ work. He said it may indicate that their analysis had a degree of rigor.
Cramer also noted that analysts covering speculative stocks often raise targets only after buying has pushed the share price past their previous estimates. He said Goldman’s move differed from that pattern, suggesting the bank was adjusting its valuation based on the company’s prospects rather than simply tracking the market price.
AI computing demand features in Goldman’s case
Goldman’s research cited expectations for growth in AI computing capacity, revenue and margins. Cramer connected that outlook to demand for SpaceX’s AI computing capacity and said it helps explain the company’s $40 billion chip plan.
The valuation debate therefore extends beyond SpaceX’s space business to AI infrastructure and demand for computing resources. If the revenue and margin expectations are met, they could affect how investors assess the company’s growth potential. The available information, however, does not specify when those expectations might be realized or the revenue they could generate. Goldman’s target remains a forecast, not a measure of results already achieved.
Cramer said SpaceX’s growth story could advance faster than Tesla’s, but stressed that the company was not suitable for the charitable trust he manages. His positive view of its prospects does not mean the trust will hold the stock.
Banks remain far apart on SpaceX valuation
Wall Street estimates vary widely. On August 5, when Goldman raised its target to $220, Deutsche Bank cut its own target from $255 to $235. Morgan Stanley’s target is $300, among the highest of the four lead banks involved in SpaceX’s IPO.
Goldman’s latest $230 target is below Morgan Stanley’s $300 and slightly under Deutsche Bank’s revised $235. The spread reflects differing views of SpaceX’s growth, AI computing demand and potential profitability. For investors tracking the stock, the relationship between its recent gains and analysts’ forecasts—and whether AI-related activity translates into actual revenue—remains central to the valuation debate.