tech
SpaceX has even more room to run after AI coding deal, Oppenheimer says
SpaceX shares are likely to get a boost from the aerospace company's acquisition of Cursor and its popular AI coding application, according to Oppenheimer.
TL;DR
- Oppenheimer maintains an "outperform" rating on SpaceX, increasing its share price target by 32% to $250.
- SpaceX agreed to acquire AI coding firm Cursor for $60 billion in stock, a deal expected to benefit both companies.
- The acquisition integrates Cursor's AI coding tools and user base into SpaceX, strengthening its AI flywheel and vertical integration.
- Oppenheimer raised its revenue and profit estimates for SpaceX due to Cursor's significant annual recurring revenue and user base.
- Most Wall Street analysts covering SpaceX have a "buy" or "strong buy" rating.