Cramer: Goldman's SpaceX Target Boost Shows Analysis Was Rigorous

Goldman Sachs lifted its SpaceX price target from $220 to $230, a $10 increase. According to CNBC's Jim Cramer, this move demonstrates that the earlier estimate was not mere speculation. The Mad Money host believes analysts are now staying ahead of the stock rather than following its price action.

Goldman, which served as a lead underwriter for SpaceX's June IPO, initiated coverage at $205 in July under analyst Eric Sheridan. The new $230 target represents the firm's second upward revision.

Why Cramer Sees the Price Target Raise as Vindication

Cramer noted that the $220 target appeared difficult to justify when SpaceX shares were trading near $120. Since then, the stock has advanced, closing at $171.92 on October 6, according to Google Finance.

The most recent target update altered his opinion.

“Maybe there really is some rigor to the analysis.”

Jim Cramer, who hosts Mad Money on CNBC, made the statement.

Cramer stated that analysts covering speculative stocks rarely increase targets until buyers have already sent shares above the old level.

Goldman's research note points to higher expected AI capacity, revenue, and margins. Cramer attributes this to demand for SpaceX's rented AI computing, which he says accounts for the $40 billion chip plan.

He adds that SpaceX's story could unfold faster than Tesla's, though it does not align with his Charitable Trust.

Is the Rest of Wall Street in Agreement on the Numbers?

On August 5, Goldman raised its target to $220, while Deutsche Bank cut its own from $255 to $235.

Meanwhile, Morgan Stanley's $300 target is the highest among the four banks that led the IPO.

Reuters reported that the Nvidia chip plan consists of $10 billion in bank loans and $30 billion in investment-grade debt.

Bloomberg sources, however, indicate the talks are early and might not lead to a deal.

If finalized, the $40 billion would be among the largest debt financings for AI infrastructure. Goldman's increased target comes ahead of SpaceX's third-quarter earnings.