Morgan Stanley analyst Adam Jonas maintained a buy rating on SpaceX and assigned a price target of $300, arguing that the market is assigning little or no value to the company's artificial intelligence operations. The assessment came after SpaceX shares fell to approximately $110.85, around 18% below the initial public offering price, following a mid-June stock market debut that raised $86 billion. Jonas stated the decline created an attractive buying opportunity, with more than half of his valuation reportedly linked to SpaceX's AI business including Grok and Cursor. The stock initially climbed almost 50% during the first three trading sessions before reversing course amid broader investor concerns about AI infrastructure costs and uncertain revenue models. SpaceX's share-price decline occurred during a retreat from technology companies making large investments in AI infrastructure, with rising oil prices, inflation fears and geopolitical tensions adding pressure to risk-sensitive assets.
Morgan Stanley Assigns $300 Price Target with AI Focus
Jonas said the company's underlying fundamentals have not materially weakened despite the stock decline. According to the analyst, the market is heavily discounting AI-related assets associated with the company, including Grok and Cursor. Investors have raised concerns about the high cost of developing AI infrastructure, uncertain revenue models and the possibility that artificial intelligence projects could distract management from SpaceX's aerospace and satellite communications businesses.
Jonas argued that these concerns have become excessive. He said that a decline toward $100 per share would effectively suggest that investors are placing no value, or even a negative value, on SpaceX's AI operations. Some investors expect additional selling pressure when early shareholder lock-up agreements begin expiring. The expiry could allow employees, insiders and other early investors to sell shares, which could potentially increase the available supply in the market.
Wall Street Banks Maintain Buy Ratings on SpaceX
Wall Street analysts are reportedly still mostly positive on SpaceX. Goldman Sachs, Bank of America, Citi and JPMorgan have all assigned the company a buy rating after its IPO. Jonas is among the most bullish analysts covering the stock. He believes SpaceX possesses many competitive advantages in rocket launches, satellite communications and artificial intelligence.
FAQ
What price target did Morgan Stanley set for SpaceX?
Morgan Stanley analyst Adam Jonas assigned SpaceX a price target of $300, with more than half of that valuation reportedly linked to the company's AI business including Grok and Cursor.
How did SpaceX stock perform after its IPO?
SpaceX raised $86 billion through its initial public offering in mid-June. Shares climbed almost 50% during the first three trading sessions before falling to approximately $110.85, placing the stock around 18% below its IPO price.
Which banks have buy ratings on SpaceX?
Goldman Sachs, Bank of America, Citi and JPMorgan have all assigned SpaceX a buy rating after its IPO, according to the source.
