SpaceX (SPCX) could see Starlink become a major driver of its value, with growth expected to accelerate as the company reaches critical mass with its V3 broadband satellites next year, UBS Securities said in a note Monday.
Analysts said they expect SpaceX shares to continue trading on demand for tokens, given the company's potential leverage as a key cloud provider and frontier model. Starship's ability to supercharge Starlink could drive significant value for the company in the medium term, according to the note.
The investment firm said SpaceX's mobile strategy is more complex, requiring additional terrestrial infrastructure and femtocells built into Starlink terminals to cover dense locations and office or multi-dwelling unit interiors that the V2 satellite network cannot reach.
The company's femtocell strategy depends on securing low-band spectrum to expand coverage and deploying femtocells at sufficient density, the analysts said, adding that matching the coverage of the three major mobile operators in cities will be challenging, as about 30% of Americans live in multi-dwelling buildings, "making this portion of the market
difficult to reach."
UBS Securities has a buy rating and a $210 price target on SpaceX.
Shares of SpaceX were up 5.9% in Monday trading.
Price: $148.24, Change: $+8.24, Percent Change: +5.88%