Space tourism is getting closer to launch.
While space tourism companies aren’t ready to send folks into space just yet, as we noted on May 24, we’re one step closer. In fact, weeks after Blue Origin carried out another successful test of its New Shepard rocket, Virgin Galactic (SPCE) had a successful test over the weekend.
That news sent Virgin Galactic from a low of about 15 to $26.90 in days.
However, this could be the start of a bigger rally.
According to Canaccord analyst Ken Herbert, now is the time to buy, upgrading the stock to a buy rating with a price target of $35 a share.
In addition, as reported by Barron’s, “Herbert calls Virgin Galactic ‘a leader in the emerging space-tourism market,’ adding that after the recent delays, flight activity should pick up culminating with commencement of commercial space service.”
“As tourist flights gain traction, we believe the stock should benefit from multiple potential catalysts,” he added.
The other key catalyst for the SPCE are folks paying thousands of dollars for a flight. At the moment, there are about 600 paying customers, which is likely to grow. Following that, the next catalyst would be the actual commercial service, which is expected next year.
However, not everyone is bullish on the SPCE story.
Morgan Stanley analyst Kristine Liwag lowered here price target from $30 to $25, reports The Fly. “She has updated the firm’s model with “more conservatism,” as Liwag has delayed her forecast for a first commercial flight out to 2022 and now assumes the equivalent of 12 passengers being flown in 2022. While last weekend’s successful flight test was a “critical milestone,” prior delays highlight downside risks.”
With the story heating up – and out of this world – SPCE could be a long-term winner.
The post Here’s Why Virgin Galactic Holdings is Blasting Off appeared first on Morningology.
