SpaceX jumps to highest close since June on bullish Morgan Stanley call

SpaceX ( SPCX ) shares got a big boost after one of the Street's biggest bulls said it's time to buy.

In a note titled "SPCX $159: Cheap and Getting Cheaper," Morgan Stanley's Adam Jonas reiterated his Outperform rating and $300 price target, claiming investors only have a few weeks to "catch" an opportunity to buy the stock ahead of some big milestones.

SpaceX stock closed up over 7%, its highest close since June.

"We think that over the next few weeks (ahead of Starship Flight 15), investors can take advantage of a unique opportunity to buy shares that look unusually cheap," Jonas said.

SpaceX just conducted a successful test during Flight 14, in which Starship reached low Earth orbit for the first time and deployed Starlink satellites.

The longtime Morgan Stanley analyst also expects developments over the next few months will help investors better appreciate the role SpaceX plays in AI efforts and chipmaking, "potentially unlocking earnings growth and multiple expansion for the stock."

One of the biggest challenges Jonas faces in getting investors on board is a lack of understanding of how difficult the SpaceX challenge is. He claims he attends several presentations where barely any of his clients own the stock.

"Only a select handful of people in the world understand the engineering challenges with Starship's heat shield or the inner workings of a full-flow staged combustion rocket engine to properly judge the testing path. Fewer still can say where compute pricing is heading as agentic token demand grows," he said.

Valuing SpaceX solely from an AI compute perspective or from a telco perspective with regard to Starlink, without accounting for the complicated business of launch, would make the stock look relatively expensive, he explained.

It seems Jonas is going with a sum-of-the-parts analysis, with investors fully valuing the Space & Connectivity units but not the AI opportunity, which includes compute deals, chipmaking, and other artificial intelligence efforts.

"We believe future AI product releases, Starship progress, and additional neocloud contracts showing continued pricing around $30-50/watt are all upside-skewed catalysts that can push the stock closer to our $300/share price target."

Pras Subramanian is Lead Transportation Reporter for Yahoo Finance. You can follow him on X and on Instagram .