As Space Exploration Technologies Corp. (NASDAQ: SPCX) stock struggles with the company’s massive disconnect between its expected revenue for 2026 of between $22 billion and $30 billion and its speculative valuation of approximately $2 trillion on September 8, 2026, Jeffrey Wlodarczak, a Wall Street analyst at Pivotal Research, believes that Starship reusability is the fundamental engineering bottleneck that must be solved.
Wlodarczak initiated a rating for SpaceX stock with a ‘Buy’, according to a note sent to clients on Tuesday. He set the firm’s 12-month price target for SPCX at $220, thereby signaling a potential 48.43% upside.
“Our $220 target is a call on reuse 20-50 flights per vehicle, cheap refurb, fast turnaround. If that is solved, the rest of the model can happen. If it is not, SPCX is a different and much smaller company,” Wlodarczak noted.
This analyst asserts that cheap, high-frequency launch capacity for the company’s Starship program could catalyze growth in Starlink’s network. As such, SpaceX could manage to capture a significant share of the $1.7 trillion terrestrial and wireless connectivity market.
Additionally, Pivotal Research highlighted that cheap, high-frequency reusability of Starship would help SpaceX to bypass ground-based power grids. Consequently, Elon Musk could deploy more orbital data centers, positioning the company to obtain a substantial market share in the rapidly expanding neocloud and hyperscaler sector.
Is SpaceX a good stock to buy?
Earlier on Tuesday, Ken Gawrelski, an expert at Wells Fargo & Co. (NYSE: WFC), assigned a ‘Buy’ rating for SpaceX. Gawrelski, however, lowered the firm’s 12-month price target for SPCX to $212 from $215.
As a result, 34 analysts surveyed by TipRanks have set an average 12-month price target for SpaceX at $231.11. As of press time, the highest price target for SPCX from these analysts was $800 while the lowest is $75.
SPCX price performance
Since its initial public offering (IPO), SPCX’s price has added over 9%., trading at $148.22 at the time of publication.
Since this company reported its second quarter (Q2) of fiscal year 2026, on August 4, SPCX’s price has attempted to regain bullish sentiment, which Wlodarczak believes hinges on Starship’s reusability.
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