SpaceX Stocks Receive Buy Ratings from Morgan Stanley and Goldman Sachs

Morgan Stanley, Goldman Sachs, and other major US investment banks issued buy recommendations for SpaceX stocks on local time May 7, following the end of the mandatory 25-day quiet period after the company's IPO. The coordinated ratings came with price targets ranging from $200 to $300, representing potential gains of up to 87% from the previous closing price of $160.42. Under US securities regulations, underwriting banks are prohibited from publishing investment opinions for 25 days after an initial public offering, and May 7 marked the expiration of this restriction for SpaceX.

Investment Banks Set Price Targets Between $200 and $300

Morgan Stanley set the highest price target at $300, projecting an 87% increase from the previous closing price of $160.42. Other major institutions followed with their own targets: Deutsche Bank at $255, JPMorgan Chase at $225, UBS at $210, Goldman Sachs at $205, and Citigroup at $200. Research firm Bernstein established a target of $239.

Morgan Stanley Cites AI Services and Reusable Technology as Growth Drivers

Morgan Stanley analyst Adam Jonas stated that AI service demand will support SpaceX's growth trajectory. "In the short term, neocloud (graphics processing unit cloud) contracts will account for most of the business, but in the long term, end-to-end AI integration services will become the core business model," Jonas explained. Morgan Stanley emphasized that SpaceX's success depends on technologies that have not yet been commercially proven, including fully reusable spacecraft, a launch system capable of thousands of annual launches, and orbital computing capabilities.

Goldman Sachs Projects Positive Cash Flow by 2031

Goldman Sachs projected that SpaceX's free cash flow (FCF) will turn positive by 2031. The bank estimated that adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) will surge from $6.58 billion last year to $35.2 billion by the end of 2030. Goldman Sachs analyst Eric Sheridan stated, "In many respects, SpaceX has a track record of actually building solutions that many industry experts previously considered unrealizable. However, the execution process has not been as smooth as public company investors typically expect."

FAQ

Why did investment banks wait until local time May 7 to issue SpaceX stock ratings?

US securities regulations impose a 25-day quiet period after an IPO, during which underwriting banks cannot publish investment opinions. Local time May 7 marked the end of this mandatory restriction for SpaceX.

What is Morgan Stanley's price target for SpaceX stocks?

Morgan Stanley set a price target of $300 for SpaceX stocks, representing an 87% increase from the previous closing price of $160.42. The bank cited AI service demand and advanced reusable technology as key growth drivers.