Morgan Stanley’s SpaceX outlook contrasts with valuation concerns

Technology · First reported 7 Nov, 20:12 · Updated 20:31

Image: Wikimedia Commons · NASA Johnson Space Center / Jonny Kim · Public domain

Morgan Stanley maintains a $300 price target and sees growth across SpaceX’s businesses, while Michael Burry questions whether the company’s valuation is justified. A separate Morgan Stanley forecast cited by Yahoo Finance raised revenue estimates and projected positive free cash flow by 2031.

Morgan Stanley’s $300 target rests partly on expected links between SpaceX’s AI, launch and connectivity businesses; Burry questions the valuation and the assumptions needed to support it.
Morgan Stanley raised its 2027 and 2028 revenue forecasts and moved its expected date for positive free cash flow to 2031.
The articles describe shares trading well below their June peak, while the second report says the stock was near its IPO price in late October.

Summary written by Lux AI from 2 articles

Key facts

Morgan Stanley price target: $300 in both reports.
Morgan Stanley 2027 revenue forecast: $175 billion, raised 93% according to Yahoo Finance.
Morgan Stanley 2028 revenue forecast: $289 billion, raised 84% according to Yahoo Finance.
Expected positive free cash flow: 2031, four years earlier than the forecast made in July.
Yahoo Finance’s 2028 earnings-multiple comparison: 17.6 times for SpaceX versus 17.7 times for the S&P 500.