Wall Street is starting to validate the SpaceX bull case, CNBC's Jim Cramer said Wednesday — a sign that Elon Musk's ambitious vision may be becoming reality faster than investors expected.
"Taking price target up, Space Exploration Technologies," the "Mad Money" host said. "Get used to hearing it."
Goldman Sachs is among the latest to raise its SpaceX price target. In a Tuesday note, the analysts went to $230 per share from $220 and reiterated their buy rating. That new SpaceX target implies about 37% upside from Wednesday's close, and it's about $5 per share above the stock's all-time high of $225.64 on June 16, just days after its record-breaking initial public offering.
Cramer said the significance of the Goldman call goes beyond the additional $10 in share price.
Shortly after that record high, SpaceX fell on hard times. When it traded as low as $104.83 in early August, Cramer said Goldman's original $220 price target seemed more aspirational than analytical. The firm's decision to raise its target with shares still well below it suggests to Cramer that the original valuation is becoming more credible. "The $10 bump from $220 to $230 ratified their previous $220 figure, which means something with the stock at $167," he added. "Maybe there really is some rigor to this analysis."