Morgan Stanley Analyst Sees Valuation Opportunity in SpaceX Following Revenue Surge
Despite a 40% decline from its post-IPO peak, SpaceX (SPCX) is currently trading at a valuation cheaper than the S&P 500 based on 2028 earnings projections. Morgan Stanley analyst Adam Jonas has significantly upgraded his outlook, nearly doubling revenue forecasts for 2027 and 2028 due to the company's growth in launch services, connectivity, and artificial intelligence. The company reported a massive 161% year-over-year revenue increase to $14.6 billion in Q3, marking its first profitable quarter since going public. However, heavy capital expenditures—totaling nearly $20 billion in the third quarter alone—and upcoming lockup expirations have pressured the stock price. Jonas maintains an Overweight rating with a $300 price target, suggesting substantial upside as the company reaches positive free cash flow sooner than previously anticipated.
Topics: Free cash flow Morgan Stanley analyst report SpaceX earnings Stock valuation