The Scottish Mortgage Trust share price has risen for three straight days, reaching its highest level since June 22, buoyed by a rebound in SpaceX stock. The trust, the UK's largest investment trust, jumped to 1,470p, an 8.46% increase from its 2023 low. Year-to-date, Scottish Mortgage has surged 123%, outperforming the FTSE 100, which gained 37.40% over the same period.
The trust's performance is heavily tied to its holdings in high-growth private and public companies. A key driver is SpaceX, which went public last month and remains a core holding. Additionally, Scottish Mortgage has significant stakes in Taiwan Semiconductor, Amazon, Meta Platforms, and NVIDIA, all of which have become relative bargains. For instance, NVIDIA trades at a forward P/E of 22, below the S&P 500's 23, while Meta Platforms trades at 17.
On the same day, Wedbush analyst Dan Ives launched coverage of SpaceX (SPCX) with a Buy rating and a $190 price target, implying a valuation of $2.5 trillion. Ives breaks out the company's value using a sum-of-the-parts model: the launch business at $66 billion, the profitable Starlink unit at $600 billion, and the AI division at $1.8 trillion. He forecasts AI revenue exceeding $80 billion by 2028. However, Ives noted Starship as both the largest value driver and the biggest risk, given only 12 test flights completed so far.
Despite the recent pullback—SPCX is down 27% from its post-IPO high of $225.64—analyst coverage is expanding rapidly, with the average price target near $240. The stock trades at roughly 115 times 2025 revenue of $18.7 billion, and net losses are expected to widen this year as infrastructure spending grows.
From a technical standpoint, Scottish Mortgage shares have formed a morning star pattern and remain above key moving averages, with a bullish flag pattern suggesting a potential move toward the 1,560p resistance and possibly 1,600p.
