Morgan Stanley Set a $300 Price Target on Elon Musk's SpaceX Stock
SpaceX's unique business model comes with a high ceiling, but also a low floor.
Overview
Space Exploration Technologies (NASDAQ: SPCX), or SpaceX for short, has been an absolute roller coaster since going public roughly a month ago. Despite the stock rocketing to $225 and then dropping back down to roughly $125, some Wall Street analysts still see big things ahead. Adam Jonas, an analyst overseeing Morgan Stanley's coverage of SpaceX, set his base case for the stock at $300 per share.
That target signals massive upside, more than double the stock's current share price. But such an ambitious price target depends on SpaceX becoming far more than a space stock. It's a bet on unprecedented vertical integration in arguably the world's most significant economic opportunity since the industrial revolution: artificial intelligence (AI).
Details
Morgan Stanley expects SpaceX to grow at a breathtaking pace for the foreseeable future. The research assumes that SpaceX's revenue will grow from $18.7 billion in 2025 to $319 billion by 2030 and to $3.3 trillion by 2040. The bulk of that comes from artificial intelligence, where Morgan Stanley is counting on SpaceX building out orbital infrastructure for global connectivity and AI.
Source
Originally published at www.fool.com.