Morgan Stanley Presents Bull Case of $600 Per Share for SpaceX Stock

Morgan Stanley has provided a bull case for the SpaceX stock with a price target of $600 per share. The firm’s analyst signaled that Cursor’s AI becoming a frontier model could play a major role in the stock potentially reaching this target. Meanwhile, Morgan Stanley reiterated its base case of $300 for the stock.

Morgan Stanley Provides Bull Case Price Target Of $600 For SpaceX Stock

Morgan Stanley’s analyst Adam Jones has presented a bull case of $600 for the stock. He stated that Cursor, which Elon Musk’s company announced plans to acquire, could become a major part of this upside for the stock as they build a broader AI platform.

“Cursor’s journey from ‘harness’ to ‘frontier’ model may be a major factor bridging the 330% upside to our $600/share bull case,” he said. It is worth noting that Morgan Stanley had before now presented a base case of $300 for the SpaceX stock, which Jones again reiterated.

Meanwhile, Cursor’s AI is known for its coding abilities. However, Jones believes that SpaceX’s broader AI platform could extend well beyond coding. Under such a scenario, he sees Grok as the intelligence layer, X providing real-time data, SpaceXAI providing the compute, Starlink serving as the connectivity layer, and Tesla as the path into physical AI.

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.

Morgan Stanley estimates that Cursor ARR could reach $8 billion by the end of this year and $33 billion by 2030. The bank noted that the $33 billion estimate does not factor in the upside from the broader SpaceX ecosystem, meaning that the ARR could be higher.

Investors Still Undervaluing The Company’s AI Business

Jones also opined that investors are still undervaluing SpaceX’s AI business, which is why the stock may still have a lot of upside. He revealed that only a few investors that he has spoken with are bullish on the company’s AI business beyond neocloud.

As such, the analyst sees more upside for the SpaceX stock as the company reveals more details about its Cursor, Grok, and future model releases. Elon Musk revealed last month that they could release Grok 4.6 this month, while Grok 4.7 could be released weeks later.

Meanwhile, Morgan Stanley’s bull case for the SPCX stock comes just as it reclaims its IPO price after facing heavy selling pressure over the last month. The stock is down over 2% at the market open today, currently trading at around $135, according to TradingView data.

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