Morgan Stanley's analyst Adam Jonas highlighted that the acquisition of Cursor, a company known for its AI coding tool, could significantly boost SpaceX's valuation. The report indicates that many investors are currently underestimating SpaceX's AI business, particularly beyond its existing neocloud offerings.
The firm has maintained an overweight rating on SpaceX shares with a price target of $300, suggesting substantial upside potential from the current trading price. The acquisition of Cursor, valued at $60 billion in stock, is anticipated to strengthen SpaceX's AI division, especially after its merger with xAI earlier this year.
Cursor's coding tool is already widely adopted, with over 60% of Fortune 500 companies using it, contributing to its reported annualized revenue exceeding $1 billion as of November 2025. Morgan Stanley believes that as more developments regarding Cursor are revealed post-acquisition, it could serve as a catalyst for SpaceX's stock price to rise.
Currently, SpaceX shares are trading slightly above their IPO price of $135 and have seen a decline of about 6% over the past month. The consensus among analysts is positive, with 29 out of 36 recommending the stock as a buy or strong buy