Investing.com -- Morgan Stanley maintains its price target of $300 on SpaceX shares, with a bull case scenario of $600, following the company's planned acquisition of AI coding platform Cursor.

SpaceX announced on June 16 that it would exercise its option to acquire Cursor for $60.0 billion worth of Class A common stock. The transaction is expected to close during the third quarter of 2026.

Cursor is the primary product built by Anysphere, a startup founded in 2022 by four MIT classmates. The platform offers an AI-native interface for writing, editing, debugging, and reviewing code. According to the company, Cursor is currently used by more than 64% of the Fortune 500 and 50,000 enterprises.

The two companies have been collaborating since April, with Grok 4.5 jointly trained on Cursor interaction data and launched inside Cursor on day one as a default model.

At the current share price of $139, Morgan Stanley estimates that SpaceX's AI business is valued at approximately $12 per share, or slightly more than 1x 2028 EV/Sales. This valuation is below neocloud peers, according to the firm.

Morgan Stanley projects Cursor's annual recurring revenue will rise to $8 billion by year-end and approximately $33 billion by 2030. The firm estimates Cursor will contribute $2.5 billion to SpaceX revenue in 2026 and $13 billion in 2027, representing roughly 10% and 19% of total AI revenue projections in those years.

The firm expects Cursor's gross margin to turn positive in the third quarter of 2026 and reach the low-60s percentage range by 2030 as more work routes to Composer and Grok models.

Morgan Stanley identified several upcoming catalysts, including further disclosure at third quarter earnings, Grok 4.6 and 4.7 model performance expected over coming weeks, Grok 5 before year-end, potential Composer 3 model, and periodic ARR figures.