Key facts
- Morgan Stanley reiterated its $300 price target for SpaceX stock.
- Analyst Adam Jonas reiterated an Overweight rating for SpaceX.
- Jonas sees distributed AI computing as a major growth catalyst for SpaceX.
- Ron Baron predicted SpaceX could achieve a valuation between $20 trillion and $50 trillion within a decade.
- Baron estimates Starlink could be worth $14 trillion to $15 trillion.
- Pivotal Research raised its target for SPCX stock from $220 to $230.
SpaceX's stock price fell around 1.5% to $154.16, contributing to an over 8% loss in the past five trading sessions. This decline occurred amid a broader market selloff triggered by hotter-than-expected US CPI inflation data, which weighed on market sentiment.
Despite the market headwinds, Morgan Stanley maintained a bullish stance on Elon Musk's space technology firm, reaffirming its $300 price target for the stock. According to Walter Bloomberg, Morgan Stanley believes investors are underestimating SpaceX's potential beyond its core rocket and satellite communications businesses.
Analyst Adam Jonas reiterated an Overweight rating, identifying distributed AI computing as a significant growth catalyst. Jonas envisions a Distributed Inference Cloud, where machines share computing capabilities and coordinate tasks efficiently, as a potentially overlooked aspect of SpaceX's operations. He views the company as a vertically integrated infrastructure provider with diverse revenue streams from rocket launches, ground stations, satellites, solar technology, and data centers, positioning it to capitalize on demand for connectivity, computing power, and autonomous technologies.
Further fueling optimism, Ron Baron, founder of Baron Funds, predicted that SpaceX could reach a valuation of $20 trillion to $50 trillion within a decade, noting that Elon Musk considers these projections conservative. Baron specifically highlighted Starlink as a major contributor, estimating its value at $14 trillion to $15 trillion, and also sees potential in space-based data centers.
Other market experts also remain bullish on SpaceX, with Pivotal Research recently raising its price target for the stock from $220 to $230.