Key Takeaways:
- At least six Wall Street firms initiated coverage with buy-equivalent ratings.
- Morgan Stanley set a $300 price target, implying 87% upside from $160.42.
- The bank projects SpaceX revenue reaching $319 billion by 2030.
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SpaceX wins initial bullish calls as Morgan Stanley sets $300 target
SpaceX received buy-equivalent ratings from at least six Wall Street firms Tuesday, with Morgan Stanley setting a $300 price target.
"SpaceX's vertical integration across launch, satellite communications and AI gives it a structural cost advantage that traditional aerospace companies cannot replicate," Adam Jonas, an analyst at Morgan Stanley, said in a note initiating coverage.
The $300 target implies 87% upside from Monday's closing price of $160.42. Morgan Stanley's bull case values SpaceX at $600 a share, while its bear case sits at $75. The bank projects revenue reaching $319 billion by 2030 and $3.3 trillion by 2040, driven by Starlink's subscriber growth and Starship's heavy-lift launch services.
The wave of initiations from bulge-bracket firms including Goldman Sachs and UBS shows growing Wall Street acceptance of space and AI companies as institutional-grade assets. Goldman initiated with a buy rating, citing SpaceX's leadership in reusable rocket technology and its expanding Starlink constellation, which now serves more than 4 million subscribers globally. UBS also assigned a buy-equivalent rating, highlighting the company's potential in the satellite broadband market.
SpaceX, which trades in secondary markets, has become one of the most closely watched private companies as it dominates the launch market with its reusable Falcon 9 rockets and expands its Starlink satellite internet business. The company's valuation has surged in recent years, reflecting investor enthusiasm for both space exploration and artificial intelligence applications.
The consensus among the six initiating firms was uniformly bullish, though questions around profitability, execution and valuation remain unresolved, according to the analyst notes. SpaceX does not disclose its financial results publicly, making it difficult for investors to assess its earnings trajectory against traditional aerospace peers such as Boeing and Lockheed Martin.
The bullish initiations could boost SpaceX's valuation in secondary markets and attract more institutional capital. Investors will watch for the next Starship test flight and any Starlink IPO updates as the next major catalysts.
This article is for informational purposes only and does not constitute investment advice.
