SpaceX’s Stock Is Whipsawing Around Its IPO Price. Morgan Stanley Says It’s ‘Attractively Valued.’

Morgan Stanley said SpaceX's stock is "attractively valued" after the company announced it will spend $100 billion to build a spaceport in Louisiana.

Analyst Adam Jonas said he's overweight on the stock, especially following the announcement. He set a $300 price target, which is more than double the current level.

Jonas said the announcement about the new Starbase means that the company will be able to increase its launch cadence and position it to top forecasts.

He noted that SpaceX is planning to build 15 pads, when eight would be necessary to reach his 2040 forecast.

"In our launch forecasts, we conservatively assume each pad can only do 2 launches per day, which means our 2040 forecast of ~5.8k Starship launches per year requires just 8 pads," he said in a note obtained by CNBC.

"Point is, we do not need a fully operational Starbase, LA to get to even our 2040 forecasts (where SpaceX has $3.5tr in revenue)."

SpaceX said in its website on Tuesday that Starbase "will be built to support thousands of Starship flights a year."

"This self-sustaining spaceport will have propellant production, power generation, deep-water shipping capabilities, vehicle processing facilities, and an airport."

Construction is set to start next year, with the first Starship launch projected for 2029. The project is set to create "more than 3,000 new jobs at Starbase, Louisana hiring heavily from nearby communities and utilizing Louisiana workers' extensive experience of building complex infrastructure in their unique environment," according to SpaceX.

SpaceX also said on Tuesday that it is pushing up the timeline to launch an AI-powered satellite.

"SpaceX, in partnership with Nvidia, has designed a space-optimized Vera Rubin NVL72 system for launch to orbit in Q4 next year, with significant scale in 2028," Musk said in a social media post. The previous goal was yo launch the satellites in 2028.

The company also announced it would be using the Nvidia processors "to accelerate the orchestration, code execution, and data processing that powers its next generation of agentic AI."

SpaceX is also involved in another high-stakes project: it's seeking to revive mPower, a small modular reactor project that was abandoned in 2017 after years of development. The centerpiece is a roughly 120-foot-tall test facility outside Lynchburg, Virginia, designed to mimic the workings of a nuclear power plant without using nuclear fuel.