Key facts
- JPMorgan reiterated its $240 price target and 'Overweight' rating on SpaceX.
- The bank sees significant upside potential, targeting around 75% from current prices.
- JPMorgan highlighted improvements in Grok's AI capabilities following the acquisition of Cursor for $60 billion.
- SpaceX's xAI division recently introduced Grok 4.6, designed for complex workloads.
- Approximately 370 million SpaceX shares are expected to become available for trading in early September.
JPMorgan continues to express a bullish stance on SpaceX, maintaining its $240 price target and 'Overweight' rating. The firm anticipates substantial upside, potentially around 75% from current levels, driven by advancements in SpaceX's artificial intelligence capabilities and strategic acquisitions.
Analyst Doug Anmuth highlighted that SpaceX's outlook has improved significantly since its $60 billion acquisition of Cursor. JPMorgan noted tangible improvements in Grok's performance, attributing them to the integration of Cursor's data for supplemental model training. The bank believes the enterprise AI market presents a greater opportunity for SpaceX as Grok's adoption grows, expecting its monetization to become a more significant contributor to AI revenues.
Cursor, a coding platform with over 50,000 business customers, is seen as a potential accelerator for SpaceX's AI push. The platform assists software developers with tasks such as writing, editing, and debugging code, with nearly two-thirds of Fortune 500 companies reportedly using it.
SpaceX's xAI division has also launched Grok 4.6, a new model designed to handle demanding workloads in research, data analysis, software engineering, and application development. JPMorgan believes Grok 4.6's features and cost structure could encourage broader adoption among business clients.
Bernstein had previously identified Grok as a potential 'wildcard' for SpaceX, emphasizing the firm's focus on AI solutions and the boost provided by the new model and Cursor.
In addition to its AI developments, SpaceX is preparing for another significant share unlock event. An estimated 370 million shares are expected to become available for trading on September 9 and 10, which could increase the public float by approximately 20%. This follows earlier unlocks in August, which made over 911 million shares eligible for trading.
Retail sentiment on Stocktwits has shown some bearishness over the past 24 hours, though a few positive posts suggest the stock may be oversold, with one user predicting a $250 price by year-end.
Separately, SpaceX is seeking renewed permission in India for its Gen 2 Starlink constellation, which aims to provide direct-to-device connectivity. As of June 30, Italian bank Intesa Sanpaolo disclosed a stake in SpaceX valued at $966 million, representing nearly 5.66 million shares.