Oppenheimer raised its price target on SpaceX (SPCX) to $250 from $190, citing approximately 26% upside potential from Wednesday's close, following the company's strategic acquisition of AI coding firm Cursor. The investment firm maintained an 'Outperform' rating and attributed the increased valuation to improved visibility into the Cursor deal and stronger confidence in SpaceX's AI-driven strategy. The price target adjustment came as SPCX stock declined 10% on Thursday and fell 5% on Wednesday in its first post-IPO retreat, following a rally that had driven shares over 40% above their offering price and briefly pushed the company's market capitalization past Microsoft.
Oppenheimer Raises SPCX Price Target to $250 Following Cursor Acquisition
Oppenheimer increased its price target on SpaceX stock to $250 from $190, representing a 26% upside from Wednesday's closing price, while maintaining an 'Outperform' rating. The firm cited increased visibility into the Cursor acquisition and stronger confidence in SpaceX's AI-driven strategy as primary factors supporting the revised valuation.
According to Oppenheimer, SpaceX owns every layer of the AI stack, providing cost and quality advantages across compute, models, data, and applications, with Cursor forming a major component of this structure. The firm stated it expects many more acquisitions ahead as part of this strategy, according to TheFly. Oppenheimer also noted that Starship serves as the launch moat and represents a NASA-funded route to a lunar supply base.
SpaceX Gains Agentic Coding Tools and Million-User Database Through $60 Billion Cursor Deal
SpaceX agreed to acquire Cursor in a $60 billion stock deal. Oppenheimer called the transaction highly beneficial for both sides and stated it is expected to boost SpaceX's revenue and profits.
Through the deal, SpaceX will gain agentic coding tools, including a software layer that supports large language models, as well as a database of more than one million users. Oppenheimer stated the acquisition gives SpaceX engineering leverage, data, and a captive base of expert developers, strengthening its AI flywheel and vertical integration, which should help innovation and margins, according to CNBC.
Oppenheimer raised estimates after the deal, stating that Cursor's annual recurring revenue is running at a $4 billion rate, up from $1 billion in 2025 and expected to reach $6 billion by end-2026. The firm also lifted SpaceX's expected Q4 AI revenue to $8.75 billion from $4.75 billion, according to CNBC.
Five of Six Analysts Rate SPCX Buy or Strong Buy
Retail sentiment on Stocktwits around SpaceX was 'bullish,' with message volume described as 'extremely high.' Oppenheimer's view aligns with broader Wall Street sentiment. Of the six analysts covering SpaceX, five rate the stock a 'Buy' or 'Strong Buy,' according to Koyfin data.
FAQ
What price target did Oppenheimer set for SpaceX stock?
Oppenheimer raised its price target on SpaceX (SPCX) to $250 from $190, citing approximately 26% upside potential from Wednesday's close following the company's acquisition of AI coding firm Cursor.
What does SpaceX gain from the Cursor acquisition?
Through the $60 billion stock deal, SpaceX will gain agentic coding tools including a software layer that supports large language models and a database of more than one million users, according to Oppenheimer as reported by CNBC.
How did SpaceX stock perform following the Cursor deal announcement?
SPCX stock declined 10% on Thursday and fell 5% on Wednesday in its first post-IPO retreat, following a rally that had driven shares over 40% above their offering price and briefly pushed the company's market capitalization past Microsoft.
