Morgan Stanley Analyst Calls SpaceX Stock 'Cheap and Getting Cheaper'
SpaceX (SPCX) is trading at 68 times sales as of now, down from its initial public offering price in June. Despite a net loss of $541 million for Q2 2026, the company reported strong revenue growth across all segments—rocket launches grew by 55%, Starlink broadband by 32%, and xAI (artificial intelligence) by 213%. While only Starlink is currently profitable, Morgan Stanley analyst Adam Jonas argues that SpaceX stock is undervalued when adjusted for expected earnings growth. He assigns a $300 price target within the next year—nearly double its current level—and claims it's one of the cheaper ways to access the space and AI economy compared to large-cap tech companies. Jonas' analysis contrasts with broader market perceptions, where SpaceX is still seen as expensive based on traditional metrics like P/S ratio. Other analysts have set higher price targets; for example, Raymond James analyst Brian Gesuale forecasts $800 per share. However, Jonas’ view remains an outlier and highlights the speculative nature of forward-looking valuations in a high-growth company with uncertain future earnings. Investors are advised to consider both growth expectations and traditional valuation measures before making investment decisions.
Topics: AI Development Earnings Growth SpaceX Starlink Stock Valuation