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Morgan Stanley doubles value estimate for SpaceX to $100 billion

Luxembourg, 22 October 2020. – Morgan Stanley doubled its long-term valuation for SpaceX since July to at least $100 billion, CNBC reported, citing a note to investors of the bank’s analyst Adam Jones.

“The pieces are coming together for SpaceX to create an economic and technological flywheel,” Jonas said, according to CNBC. “It is clear to investors and industry observers that SpaceX’s launch cost advantages are being used to accelerate deployment of its LEO broadband network.”

The “promise of a viable and capable satellite broadband service increases, helping the company attract large amounts of capital at attractive rates, further enabling development of even more capable launch architectures (Starship) that further deepens and widens the moat in satellite launch costs”, Jonas was quoted.

Morgan Stanley increased its base case model for SpaceX’s valuation to $101 billion, up from $52 billion previously, CNBC’s Michael Sheetz reported. The bank also increased its best-case scenario, where SpaceX would exceed expectations, to an estimated company value of $203 billion, up from $175 billion before.

While SpaceX is currently launching rockets at a rate of about one every two and half weeks, Morgan Stanley’s base case assumes that it achieves a launch cadence of one launch per day by 2040, the report said.

SpaceX is a privately held company and has so far not revealed any plans for a public offering. End of September, Elon Musk indicated in a tweet that “we will probably IPO Starlink, but only several years in the future when revenue growth is smooth & predictable”.

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