HAWTHORNE, Calif. — One of Wall Street's most prominent analysts is telling clients the SpaceX selloff has gone too far. Morgan Stanley's Adam Jonas argued in a Friday note that shares of SpaceX (NASDAQ: SPCX) near $100 would imply investors are assigning zero value to the company's artificial intelligence business — and reiterated a $300 price target, among the highest on Wall Street.
The disconnect Jonas sees
"We believe the current disconnect between increasingly bearish investor sentiment and largely unchanged fundamentals creates an attractive entry point in SpaceX shares," Jonas wrote. More than half of his $300 target is ascribed to the AI segment, which includes Grok and the Cursor coding business folded in through the xAI merger. Many investors, he noted, "significantly discount" those assets because of heavy capital requirements — a skepticism he believes misreads the fundamentals.
The stock has had a turbulent debut since its record $86 billion offering in mid-June, touching a low of $110.85 — about 18% below the IPO price — before Friday's successful Starship flight. Some investors expect a further dip toward $100 next month when the first lockup expires and insiders can begin selling.
The Street agrees with the bulls
Jonas is far from alone. Nearly 80% of analysts covering SpaceX recommend buying the stock, with an average price target around $232 — implying shares could roughly double. Goldman Sachs, Bank of America, Citigroup and JPMorgan all carry buy-equivalent ratings, extending the constructive tone we noted when Wall Street stayed bullish as SPCX slipped below its IPO price.
