SpaceX Shares Win Early Bullish Calls From Wall Street Brokers

SpaceX is winning early backing from Wall Street as global brokerages launch coverage of Elon Musk’s rocket and artificial intelligence company with a clear consensus: buy the stock.

At least six brokers, including Morgan Stanley, Goldman Sachs Group Inc. and UBS Group AG have started coverage of the stock with buy-equivalent ratings, leaning into Space Exploration Technologies Corp.’s long-term growth story even as questions over its profitability, execution and valuation continue to linger after a blockbuster market debut.

The analyst calls matter because they give investors a framework for valuing SpaceX as more than a Musk-driven moonshot. Quiet period ended this week for analysts at banks that underwrote the $86 billion initial public offering, which was led by Goldman Sachs, Morgan Stanley, Bank of America Corp., Citigroup Inc. and JPMorgan Chase & Co., with 18 other banks participating.

“SpaceX can convert energy into intelligence at scale with optionality to monetize through a range of consumer and enterprise solutions for the next era of AI… the final frontier,” Morgan Stanley analysts including Adam Jonas wrote in a note dated July 7. They set a price target of $300 per share, among the highest on the Wall Street, implying an 87% gain from Monday’s close of $160.42.

Morgan Stanley analysts see SpaceX shares ranging from $75 in a bear case to $600 in a bull case, with revenue potentially reaching $319 billion by 2030 and $3.3 trillion by 2040.