SpaceX has secured buy ratings or the equivalent from a swath of Wall Street stock brokerages, lending further support to Elon Musk’s newly floated artificial intelligence (AI) and rocket company.
Banks including Goldman Sachs, UBS and Morgan Stanley issued bullish recommendations for SpaceX’s stock on Tuesday, their first day of coverage following the end of the quiet period for banks that underwrote SpaceX’s mammoth initial public offering last month.
The ratings are used by investors to help inform their stock purchases, and come after the shares shot up from their initial public offering (IPO) price of $135 (€118) to as high as $225 before falling back to close at about $160 on Monday, where they continued to hover in premarket trading on Tuesday.
Morgan Stanley rated the shares as “overweight/attractive” and gave the stock a $300 price target, while Bernstein had an “outperform” rating and a $239 target.
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Citi said its $200 price target for the end of this year “is a milestone along the path to $900+ which becomes realistic assuming key engineering achievements are demonstrated at scale”.
It added: “The successful deployment of Starship will establish the most affordable and scalable path to unlocking the economic potential of space ... giving SpaceX access to trillion-dollar markets that no other company can tap into.”
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SpaceX’s market capitalisation is currently about $2.1 trillion. A share price of $900 would value it at nearly $12 trillion, well above the value of the world’s biggest company Nvidia, which is worth about $4.7 trillion.
UBS said SpaceX had “an unparalleled set of assets” in its reusable rockets and constellation of Starlink satellites, initiating its coverage with a buy rating and a 12-month target price of $210.
The Swiss bank also said advances in chatbot Grok and SpaceX’s acquisition of AI coding start-up Cursor were “poised to narrow the gap” between SpaceX and frontier labs OpenAI and Anthropic.
In an illustration of what has been described as a “lottery ticket” mentality in the market around the SpaceX IPO, UBS described the company as a “call option” – a derivative giving the holder the right to buy – for investors as “Elon Musk looks to fulfil his vision of making life multiplanetary”.
Bank of America has a $235 price target. According to the bank’s estimates for 2027 earnings, the company is currently trading on a price-to-earnings ratio of 118 times, dropping to about 43 times earnings in 2028. In comparison, the Nasdaq 100 index, which SpaceX joined on Tuesday, trades on 23 times forward earnings, according to Bloomberg data.
“We think investors should view much of SpaceX’s long-term value ... through an option value lens,” the bank said in its note. “While the economic contribution of many future space markets is uncertain today, SpaceX owns the enabling infrastructure that would be required if such markets develop.”
Many of the analysts acknowledged the uncertainty implicit in their projections. Morgan Stanley analysts set an “intentionally wide” range of possible outcomes for the share price, from a $75 bear case and $600 bull case, “balancing SpaceX’s unique ability to capture the expanding space and AI opportunity against material execution, funding and technology risk”.
However, the bank was ultimately optimistic about the company’s future, describing it as “the final frontier” of AI and writing that SpaceX was “one of the few platforms that can link real estate in orbit, global connectivity and compute capacity in one infrastructure stack”.
The potential of Cursor – a code-editing start-up that SpaceX acquired the right to buy earlier this year – is underappreciated by the rest of the market, the bank added.
SpaceX’s entry into the Nasdaq 100 will force tracker funds tied to the index of largely tech stocks to buy it.
Companies usually have to wait up to a year after listing to gain entry into major indices that are tracked by funds with trillions of dollars under management. But SpaceX was able to secure early entry from Nasdaq, FTSE Russell and MSCI. – Copyright The Financial Times Limited 2026
