SpaceX Surges for Second Straight Day... Morgan Stanley: "$300 Price Target Remains Valid"

[Financial News]  

Shares of SpaceX, Elon Musk's space and artificial intelligence (AI) company, continued their sharp rise for a second straight day on the 5th (local time). Morgan Stanley's decision to maintain its $300 price target served as the catalyst. If Morgan Stanley's forecast proves accurate, SpaceX's stock could nearly double from here.
According to Yahoo Finance, Morgan Stanley star analyst Adam Jonas reaffirmed an Overweight (Buy) rating and a $300 price target in a research note that day. Jonas emphasized that SpaceX would reach a milestone soon and that the buying opportunity would disappear within just a few weeks.
After soaring 7.4% on the 2nd, SpaceX jumped another 6.2% that day, climbing to around $169.
Jonas said, "Over the next few weeks, ahead of the 15th Starship launch, investors will have a unique opportunity to buy SpaceX shares that look unusually cheap." He added that the stock could surge afterward, making it difficult to get on board.
SpaceX is believed to have laid the groundwork for its stock rally after the successful 14th Starship test launch last week. During the test, the Starship rocket reached low Earth orbit for the first time and successfully deployed Starlink satellites.
Jonas also forecast that investors would begin assigning generous valuations to SpaceX's AI and semiconductor manufacturing businesses over the coming months. This is another factor behind the optimism over a sharp rise in the stock.
However, Jonas pointed out that investors are reluctant to buy because they do not understand how difficult the challenges facing SpaceX are.
He said, "Only a handful of people worldwide can accurately understand the engineering challenge of Starship's thermal shielding or the inner workings of a full-flow staged-combustion rocket engine well enough to properly assess test launches, and even fewer can predict where computing costs will go as demand for agentic tokens increases."
Jonas noted that SpaceX could look expensive if it were valued solely from the perspective of AI computing or communications linked to Starlink. He said its true value can be assessed only by taking its complex rocket-launch business into account.
He added, "Future AI product announcements, progress on Starship, and additional Neocloud contracts continuing to be priced at $30–$50 per watt will bring SpaceX's stock closer to the target of $300 per share."

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