Argus Research Upgrades SpaceX to Buy Rating
Argus Research upgraded SpaceX shares to a buy rating following strong second-quarter performance and rapid returns on AI infrastructure investments.
Investment research firm Argus Research upgraded its opinion on Space Exploration Technologies Corp. from hold to buy on Friday, maintaining a 12-month price target of $160. The move comes after a period of significant volatility, including a 37% share plunge in July and a 14% drop last Wednesday following the company's first public earnings report.
Analyst Steve Silver cited strong second-quarter operational performance and rapid payback on capital expenditures as the primary drivers for the upgrade. SpaceX increased spending to over $18 billion, a six-fold increase intended to build artificial intelligence infrastructure. Following the announcement, SpaceX shares rose 10% in early Friday trading, extending a five-day rally of approximately 17%.
Argus Research noted that upcoming lockup expirations for insider shares may create near-term selling pressure. However, the firm views potential pullbacks as buying opportunities, citing the company's growth outlook and the track record of CEO Elon Musk.
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