Investing.com -- Morningstar analysts valued SpaceX at $780 billion, less than half of the $1.75 trillion valuation the company is targeting in its initial public offering. The assessment comes just days ahead of SpaceX's planned IPO roadshow set to begin Thursday.

The research firm expressed uncertainty about the prospects for SpaceX's artificial intelligence business, which includes xAI and social media platform X, citing unclear economics and competition from OpenAI and Anthropic.

"We don't see Grok as one of the leading AI labs today," said Morningstar equity analyst Nicolas Owens, referring to the chatbot developed by xAI.

Owens cautioned that the future promise of SpaceX's AI segment relies on untested technology such as orbital data centers. Starlink, the satellite broadband business, also faces technological hurdles, many of which may be outside the company's control, he said.

"We think the company has been significantly overvalued and investors will have opportunities to buy the stock at more attractive levels after the IPO," Owens said.

SpaceX is aiming to launch the roadshow on June 4, with the stock scheduled to debut on the Nasdaq on June 12.

Morningstar said the stock could ascend in the near term, given the low float and the strong cadre of major investment banks underwriting the IPO. Goldman Sachs, Morgan Stanley, BofA Securities, Citigroup and J.P. Morgan are among the underwriters for SpaceX's share sale.

"Long-term investors eager to participate in SpaceX's future endeavors and potential success will have opportunities to do so with a greater margin of safety than the initial offering is likely to provide," Owens said.

The company was last valued at $1.53 trillion on secondary trading platform Forge Global.