Analysts at Morgan Stanley are increasingly bullish on Elon Musk’s SpaceX, forecasting that SPCX stock will rocket higher towards $600. The space company recently spent $60 billion on acquiring AI coding platform Cursor, a deal the brokerage believes could turn into a meaningful contributor to the company’s rapidly expanding AI business.
Morgan Stanley recently maintained a $300 price target for SpaceX, but its bull-case valuation assumes faster execution across AI, Starship and orbital compute. Analyst Adam Jonas signaled that Cursor’s AI becoming a frontier model could play a major role in the stock’s potential to reach this target. “As investors see more breadcrumbs on the Cursor/Grok story, we see potential for the implied valuation discount on SpaceX’s AI business to lift, driving potentially substantial appreciation of the stock, Jonas wrote in an investor note, according to CNBC.
Morgan Stanley estimates that Cursor ARR could reach $8 billion by the end of this year and $33 billion by 2030. Further commenting on Cursor’s role in the upside for the SpaceX stock, Jones opined that value may accrue to the layer that owns the data and deployment as code generation becomes more commoditized, which is an area that Cursor currently dominates.
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SpaceX stock (SPCX) is on a hot streak over the last five days, gaining as much as 16% and returning to its IPO launch price. An IPO lock-up expiration made over 911 million SpaceX shares eligible to trade this week, and more than 4 billion additional shares will unlock by the end of the year. Compared to its IPO price, the Elon Musk-led space company’s stock remains down 11%; however, the latest rally implies that a potential buy-the-dip opportunity appeared last week.