SpaceX Stock Earns Buy Rating on Starship Reusability Hopes

Pivotal Research has initiated coverage of SpaceX with a Buy rating and a $220 price target, identifying the company's Starship program as central to its valuation thesis. The research firm's investment case hinges on SpaceX achieving approximately 20 to 50 reusable flights per Starship vehicle, coupled with inexpensive and rapid refurbishment between missions. Analyst Jeffrey Wlodarczak stated that the current $2 trillion enterprise value rests almost entirely on solving this significant engineering challenge, comparing the desired outcome to the operational economics of commercial aircraft. While SpaceX has made progress, including catching and reusing its Super Heavy booster, the full system's rapid reusability remains unproven. Starship has completed 13 test flights, with eight considered successful, but none have yet demonstrated the repeated reuse of its upper stage. The ability to recover a rocket is distinct from operating it frequently and economically, which is crucial for spreading manufacturing expenses across many missions and significantly lowering launch costs. SpaceX reported strong financial performance, with quarterly revenue reaching approximately $7.