Morgan Stanley Warns of Upcoming Challenges for SpaceX
Morgan Stanley has warned that SpaceX is approaching a critical juncture, likening it to 'Max Q'—the point in rocket flight where aerodynamic stress peaks. The firm highlighted concerns around the company's upcoming earnings report and an impending stock lockup expiration on August 6, which could unlock nearly $100 billion worth of shares for early investors and employees. The investment bank maintains a positive outlook with an Overweight rating and a price target of $300 per share. However, it acknowledges that the focus will be more on management commentary than financial results during this quarter's earnings call. Key metrics include estimated revenue of $6.75 billion and adjusted EBITDA of $2 billion. Morgan Stanley also noted investor sentiment is divided in the short term but becomes more balanced over 12 to 18 months, with bears currently dominating near-term expectations.
Topics: IPO performance Max Q Morgan Stanley share unlocking SpaceX