The SpaceX (NASDAQ: SPCX) share price has rocketed higher. After falling to near $100 in early August, it’s shot up above $150. Can it continue to move higher? Here’s what the charts say.
Revenue growth forecasts are mind-blowing
The first chart I want to focus on is projected revenue growth. Because SpaceX’s revenue’s expected to surge in the years ahead as a result of demand for its AI compute and satellite broadband services.
This year, analysts expect the company’s top line to more than double. Next year, they expect it to more than double again.
Now, these are just forecasts and there’s no guarantee they’ll come to fruition. However, if SpaceX is generating revenue of $200bn by 2028 (more than 10 times the 2025 figure), I’d expect its share price to be materially higher than today.
Earnings forecasts are rising
SpaceX isn’t just a revenue growth story however. In the years ahead, analysts expect the company to generate substantial profits.
Now, what’s interesting here is that the earnings per share (EPS) forecast for 2027 is rising rapidly. We can see this in the chart below.
As of 7 October, it was $1.77 (giving us a price-to-earnings ratio of about 88). That compares to $1.46 on 7 August.
Rising earnings forecasts tend to push a stock up so if we were to see the consensus EPS forecast rise from here, the share price could keep rising. I’ll point out I think it will keep rising – Goldman Sachs just came out with an EPS forecast of $3.96 for 2027 which is far higher than the consensus estimate.
Wall Street’s price targets are bullish
Finally, I want to zoom in on Wall Street’s price targets. I’ve put some of the most recent forecasts in a chart below.
As you can see, analysts are quite bullish on SpaceX and all of those firms expect the stock to rise over the next 12 months.
And they expect it to rise significantly too: $250 represents a gain of about 60% from here while $280 represents a gain of around 80%.
As with revenue and earnings projections however, these are just forecasts and shouldn’t be relied on.
Worth a small investment?
Put all this together and there are certainly reasons to be bullish on the SpaceX share price trajectory, despite trading at a sky-high valuation at present. While the company’s probably currently overvalued, its shares could easily keep rising given the revenue and earnings projections.
Now, I’m not saying that investors should rush out and buy stock in SpaceX – it’s risky at current levels given the valuation as there’s little room for an operational setback or a growth slowdown. However, a small position could be worth considering for the long term – that’s the approach I’m taking.
Should you invest £5,000 in SpaceX right now?
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Edward Sheldon owns shares in SpaceX.
This story originally appeared on Motley Fool
