Morgan Stanley Kept the Target and Added Only a New Bull Case
On August 11, 2026, financial news curator Walter Bloomberg relayed a SpaceX (SPCX) report. Morgan Stanley kept its base-case price target at $300 and laid out a $600 bull case. TipRanks, Yahoo Finance, and Investing.com each reported on the same report.
Why Is a Rocket Company Buying a Coding Platform?
The background is SpaceX's exercise of its option to acquire Cursor (developed by Anysphere), the AI coding platform, announced in June 2026. The deal is reportedly worth $60 billion, structured as a stock exchange, with closing expected in the third quarter of 2026. Cursor says it is used by more than 64% of the Fortune 500 and by more than 50,000 companies (source). Morgan Stanley treated the acquisition as a new pillar of SpaceX's valuation.
The Base Target Is Unchanged, but the Upside Doubled
| Scenario | Price target | Assumption |
|---|---|---|
| Bear | $75 | AI and Cursor investments fail to turn into revenue |
| Base | $300 | Growth continues, led by the existing businesses (launch and Starlink) |
| Bull | $600 | Cursor, Starship, and orbital computing turn into long-term cash flow |
The three figures are also confirmed in a StreetInsider report. The key point of this report is that the base case stayed put while only the top end widened.
If Cursor's Revenue Is Added to SpaceX's Results
| Date | Cursor annual recurring revenue (ARR) forecast |
|---|---|
| End of 2026 | $8 billion |
| 2030 | About $33 billion |
Morgan Stanley estimated that Cursor would add about $2.5 billion to SpaceX's 2026 revenue (TipRanks). That puts software recurring revenue, different in nature from the launch and satellite businesses, into the valuation mix.
What to Watch Is Cursor's Staying Power, Not the Stock Price
For developers and studios who use Cursor as a working tool, the meaning of this news is not the stock price but the platform's continued existence. If the acquirer becomes SpaceX, with its large pool of capital, service stability and investor confidence could change. But the deal is still at the option-exercise stage, before closing, and whether Cursor's product and pricing policies will stay the same after the acquisition has not been officially confirmed.
A Price Target Isn't a Prophecy
These figures are secondary sources compiling analyst reports, not the full text of an official announcement. A price target is only an investment opinion, not a certain future, and the $600 bull case also comes with conditions that several businesses must turn into cash flow at the same time. This post does not recommend buying or selling any stock and only reports that these forecasts were published.