SpaceX shares closed at $158.96, just 1% below their IPO price from June, signaling a recovery after previous declines. Analysts, including Adam Jonas from Morgan Stanley, view the stock as undervalued given its growth prospects, despite a high forward earnings multiple of 133.
Jonas highlighted the significance of the upcoming Flight 15, which is the next test of the Starship rocket, expected later this month or in early November. The Starship is anticipated to be a key driver of profitability due to its substantial payload capacity and cost-saving potential. Morgan Stanley has set a price target of $300 for SpaceX, suggesting an 88% upside.
Wells Fargo analysts also maintain an 'overweight' rating, with a price target of $212, indicating a 33% upside, and expect two to three more launches this year. Additionally, Deutsche Bank analysts believe the broader space sector may be on the verge of recovery after a recent correction, which saw SpaceX's stock drop 12%.
They noted that the top 50 global space stocks, excluding SpaceX, had a combined market capitalization of $270 billion at the end of last year, despite a decline in the first three quarters of 2026. This context suggests that both SpaceX and the overall space sector could experience significant gains in the near future