tech
SpaceX shares can more than double, Morgan Stanley says. The bull thesis isn't based on space business
SpaceX has worked to become a bigger player in AI by acquiring startup Cursor, and that should add considerable value to its shares, Morgan Stanley says.
TL;DR
- Morgan Stanley predicts SpaceX's stock could more than double, primarily due to its AI business growth.
- The acquisition of AI startup Cursor is a key factor in this optimistic outlook.
- Morgan Stanley maintains an overweight rating and a $300 price target for SpaceX shares.
- Cursor's AI coding tool is used by over 60% of Fortune 500 companies and has achieved $1 billion in annualized revenue.
- The AI acquisition aims to make SpaceX more competitive against industry leaders like OpenAI and Anthropic.
- The bullish sentiment is supported by the majority of analysts covering SpaceX.
- SpaceX shares have seen a slight decline recently and are trading near their IPO price.