SpaceX (SPCX) has been a focal point for investors since its historic IPO on June 12, which valued the space infrastructure and AI company at nearly $2 trillion. While many market participants view the current valuation as stretched, Raymond James analyst Brian Gesuale has taken a contrarian stance, arguing that the stock is actually undervalued at current levels.
Raymond James Sets $800 Price Target
In a research note released today, Gesuale initiated coverage on SpaceX with a price target of $800 per share, implying potential upside of approximately 430% from recent trading levels. The analyst's bullish thesis centers on the commercial maturation of SpaceX's Starship vehicle, which he describes as a transformative asset capable of carrying over 100 metric tonnes into orbit.
Gesuale argues that Starship effectively rewrites aerospace economics by shifting orbital launch from a custom, low-frequency capability into a highly automated transportation network. This transition mirrors the operating cadence of commercial aviation, with continuously falling unit costs, enabling SpaceX to tap into a newly unlocked $30 trillion total addressable market.
AI as a Key Catalyst
Beyond transforming global logistics and satellite deployment, Gesuale highlights artificial intelligence as a major driver for SpaceX's premium valuation. As enterprise software shifts toward compute-heavy, agentic AI systems, the primary bottleneck for tech companies has moved from software development to physical infrastructure and power availability.
SpaceX is uniquely positioned to commercialize an ultra-low-cost platform designed to convert raw electricity into actionable, AI-powered analytical insights, according to Gesuale. By building out data capabilities connected to its satellite infrastructure, the company is quietly erecting the foundational infrastructure required to generate useful intelligence at a lower cost than standard terrestrial operators.
Wall Street Consensus and Insider Familiarity
Raymond James is not alone in its long-term optimism, though its $800 target sits at the top of Wall Street estimates. The firm acted as an underwriter for SpaceX's massive $75 billion capital raise alongside lead bookrunners Goldman Sachs and Morgan Stanley. This insider familiarity supports a thesis that compares SpaceX to historic economic catalysts like the railroads or the internet grid.
Current consensus data from LSEG reveals that more than two-thirds of covering analysts hold a “Buy” or equivalent rating on Elon Musk's space infrastructure and AI giant. By framing the company as a pure-play industrial infrastructure backbone rather than a speculative aerospace venture, analysts increasingly view the current post-IPO consolidation as a unique entry point into SPCX stock.
For context, recent developments such as the potential Tesla-SpaceX merger have added to the narrative. As JPMorgan noted, such a merger is 'strategically coherent' but not necessarily a buy signal. Meanwhile, Cathie Wood has bet on SpaceX over AI hype, and SpaceX stock has returned to its $150 IPO price, with Wall Street bullish but caution persisting.
This article is for informational purposes only and does not constitute financial advice.
