SpaceX stock could double to $300, Morgan Stanley thinks

The share of SpaceX has experienced considerable price fluctuations since its IPO. Nevertheless, the US investment bank Morgan Stanley still sees a lot of room for a rise. According to the bank, Elon Musk's aerospace company could be worth significantly more. To do this, however, a number of important developments must turn out well.

SpaceX debuted on the U.S. stock market earlier this year at an introductory price of $150. After the IPO, the share initially fell to 100 dollars, but then a strong recovery followed.

Earlier this week, the stock peaked at $175, after which the price fell back to $145. This means that the share is once again around the introductory price. According to Morgan Stanley analyst Adam Jonas, however, there is still a lot of room for a rise in the long term.

Jonas has a price target of $300. From the current price, this means a possible return of more than 100 percent. It is striking that he finds SpaceX attractively valued, despite the company's enormous market value.

SpaceX is currently valued at approximately 70 times annual revenue and 200 times expected profit. Those are particularly high ratings, but according to Jonas, those numbers don't tell the whole story.

If the expected growth is also taken into account, SpaceX would be even more attractively valued in certain respects than large technology companies such as Amazon, Alphabet and Meta.

According to Jonas, the greatest strength of SpaceX lies in the combination of three activities: space, satellite internet and artificial intelligence (AI).

With reusable rockets, SpaceX has already significantly reduced the cost of space launches. At the same time, the satellite internet service Starlink is growing and the company is working on new applications for AI.

Starship in particular plays an important role in this. The massive rocket should make space launches even cheaper and offer new commercial opportunities.

The recent financial results are also striking. Quarterly revenue increased 92 percent to $7.8 billion. At the same time, net loss decreased from about $1 billion to $541 million.

Nevertheless, there are also considerable risks. Delays in Starship, stricter regulations or disappointing AI revenues can put growth expectations under pressure. It is precisely these expectations that play an important role in the current valuation.

As a result, investors are already paying a high price for the expected growth of SpaceX. If the development of Starship is delayed or new sources of income are disappointing, this may also have an impact on the share price.