SpaceX (NASDAQ: SPCX) stock price is in focus ahead of the FCC’s vote on a proposal that would make an extra 482MHz spectrum available for direct-to-device satellite services.
The proposal’s passing could make it easier for SpaceX, through Starlink, to provide cellular services. But ahead of this vote, SpaceX stock has dropped by 3.38% to trade at $143 at the time of writing.
However, analysts from Deutsche Bank have raised the SPCX stock price target, basing their bullish outlook on the company’s compute advantage.
FCC to Vote on Spectrum Expansion Proposal on October 29
The FCC vote that is taking place on October 29 has already received opposition from AT&T, Verizon, and T-Mobile. The mobile carriers argue that expanding the number of eligible bands to create an additional 482MHz of spectrum could make them unavailable to 300 million users who depend on them.
But SpaceX, in its meeting with the FCC on October 23, argues that more spectrum could open up additional frequencies for SpaceX, while also giving satellite networks more flexibility.
The FCC vote comes after SpaceX secured approval from the regulator to acquire long-bad spectrum licenses in the 800 MHz frequency range. If the vote passes, it could be bullish for SpaceX stock price.
This approval and the looming vote draw speculation that SpaceX could be looking to launch a mobile service even as bets continue to grow about a merger with Tesla, per data from CoinGape prediction markets.
Barclays expects that SpaceX will confirm plans for this merger before the end of 2026 and has since upgraded Tesla stock to overweight.
Deutsche Bank Doubles Down on SpaceX Stock Price as Fitch Maintains Credit Outlook
Deutsche Bank has raised its target for SpaceX stock from $235 to $250, and also maintained its “buy” rating on the shares.
The bank’s analysts base their higher target on SpaceX’s vertical integration, which gives it an edge in compute costs.
They note that SpaceX builds its compute power for $35B-$36B per GW, which is lower than the average of $50 billion per GW across the rest of the industry.
“Our sense is estimates for the next few quarters may still be too low, SpaceX’s ability to leverage a compute advantage into better inference is underappreciated,” the analysts said.
Meanwhile, Fitch Ratings has maintained a BBB+ rating on SpaceX, after the company secured a $40 billion financing deal for Nvidia chips. This rating suggests that the deal has not changed SpaceX’s credit outlook, which is a good thing for the stock price.
SpaceX Stock Extends Decline Despite Bullish Developments
The positive analyst ratings are not supporting gains for SpaceX stock price ahead of the FCC vote on October 19.
In fact, at press time, SPCX stock price had dropped to $143, and had earlier recorded an intraday low of $142, with this being the lowest price for the shares since October 15.
The daily chart shows that $143 has been a strong support, with the price bouncing each time it was tested. This support also lies on the lower end of an accumulation zone where buyers appear to enter the market. Bouncing from this support might push SpaceX to $171.
However, the CMF line that is negative warns that sellers have the upper hand even as the price enters a zone that has previously attracted buyers. The ADX line is also tipping south to suggest the trend is weak.
The four-hour chart warns that if SPCX stock price confirms a close below this support at $143, it will have created a bearish head and shoulders pattern.
A drop will see SpaceX stock price drop to test support at the IPO price of $135, and if that does not hold, bears might retest the sub-$130 levels.
