SpaceX Receives Street-High $800 Target; Salesforce Downgraded on AI Product Concerns

Wall Street analysts issued several key calls this week on companies central to the artificial intelligence theme, with Raymond James initiating coverage on SpaceX with a bullish $800 price target, while Bernstein downgraded Salesforce on concerns over its AI product adoption.

Bullish Calls on Infrastructure and Commerce

Raymond James initiated coverage of SpaceX with a Strong Buy rating, calling the private company's work a foundational platform for the next generation of industrial capacity. The firm's analyst, Brian Gesuale, argued that SpaceX is driving "the most significant infrastructure convergence since the advent of the Internet," with a total addressable market estimated at nearly $30 trillion.

The thesis centers on Starship, which the analyst said reduces the cost of transporting mass to orbit by over 99%. Raymond James projects SpaceX revenue will grow from approximately $38.5 billion today to over $837 billion by 2031. The $800 price target is based on a discounted cash flow analysis of the firm's 2031 EBITDA estimates.

In e-commerce, Stifel upgraded Shopify to Buy from Hold and raised its price target to $150 from $110. The firm believes a sharp year-to-date stock decline has created an attractive entry point, forecasting a path to 30%-plus revenue growth in 2026. Stifel highlighted Shopify's strong market share gains, with first-quarter gross merchandise value (GMV) growing 35% year-over-year, far outpacing the broader U.S. e-commerce market.

Divergent Views on Asian Tech

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Bank of America reiterated its Buy rating on Alibaba, with a price objective of $172 per ADS, calling it "one of the most compelling AI plays in China." The bank expects AI-driven demand to accelerate cloud revenue growth to 45% year-over-year in the June quarter, up from 38% in the prior quarter. While core advertising revenue is expected to be soft, BofA sees a "key earnings inflection" in fiscal 2027.

Meanwhile, Mizuho analyst Jordan Klein argued that a recent sell-off in Samsung Electronics was an overreaction to its preliminary second-quarter results. Klein stated that the company's operating profit was a "strong beat" excluding one-time expenses and that underlying memory fundamentals remain strong. He pointed to forecasts of third-quarter NAND price increases of 35-40% quarter-over-quarter as a key positive for the sector.

Caution Emerges for Enterprise AI

Bernstein downgraded Salesforce to Sector Weight from Outperform, removing its price target after receiving weak customer feedback on the company's Agentforce AI product. Analyst Jackson Ader noted that customer conversations indicated that client data is often not organized enough for AI and that the product "just isn’t there yet."

The firm also cited a recent CIO survey showing that more respondents expect to deprioritize Salesforce spending over the next 12 months than increase it. Bernstein concluded that evidence of sustained business acceleration from Agentforce "is further out than we’d expected, if it plays out at all."