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SPCE Shares Up 19% Following Analysts Bullish Call on Virgin Galactic

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At the time of writing, as the market opened, Virgin Galactic (SPCE) shares are 19.26% up, trading at .60.The shares of Virgin Galactic Holdings Inc (NYSE: SPCE) has risen in the pre-market following a boosted share price call by the Bank of America Corp (NYSE: BAC). Per reports from CNBC, Virgin Galactic (SPCE) shares received a buy rating, not only from Bank of America analysts led by Ron Epstein but by the likes of Morgan Stanley (NYSE: MS), Vertical Research Partners, Cowen Inc (NASDAQ: COWN), UBS Group (NYSE: UBS), Credit Suisse Group (NYSE: CS), and Alembic Global Advisors.“While Virgin Galactic is not yet operational, the company is gearing up to begin serving customers in early 2021. We believe SPCE’s growth potential is unparalleled vs. our coverage and the current nascent

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At the time of writing, as the market opened, Virgin Galactic (SPCE) shares are 19.26% up, trading at $19.60.

The shares of Virgin Galactic Holdings Inc (NYSE: SPCE) has risen in the pre-market following a boosted share price call by the Bank of America Corp (NYSE: BAC). Per reports from CNBC, Virgin Galactic (SPCE) shares received a buy rating, not only from Bank of America analysts led by Ron Epstein but by the likes of Morgan Stanley (NYSE: MS), Vertical Research Partners, Cowen Inc (NASDAQ: COWN), UBS Group (NYSE: UBS), Credit Suisse Group (NYSE: CS), and Alembic Global Advisors.

“While Virgin Galactic is not yet operational, the company is gearing up to begin serving customers in early 2021. We believe SPCE’s growth potential is unparalleled vs. our coverage and the current nascent stages of the company provide investors with a unique entry point into the stock,” Bank of America analyst Ron Epstein wrote a note to investors.

Following this stock price boom call, the Virgin Galactic’s shares rose by about 14% in premarket trading from its previous close of $16.34. At the time of writing, as the market opened, SPCE shares are 19.26% up, trading at $19.60. The stock is up over 42% from the beginning of the year. Despite these massive gains, however, SPCE shares are still below their pre-COVID-19 levels. BofA analysts’ bullish expectation may usher in a season of rebounds.

Despite Growing Price, SPCE Shares Still Considered to Be Risky

While Virgin Galactic’s SPCE shares are currently seeing investor’s bullish push, the stock is still largely considered as a high-risk venture by industry observers.

Founded in 2004, the company nurtures the vision of bringing space flights and travels to the masses in a bid to connect with the world beyond. Working with this inspiration, in 2008, Sir Richard Branson, the founder of Virgin Group under which Virgin Galactic is affiliated, stated that maiden flights into space will commence in a few months at that time, a milestone it is yet to cross in more than a decade after.

According to the Motley Fool, the stocks of SPCE are considered high risk, high reward venture noting that while the company has the prospects of blossoming in about a decade from now, there is also a possibility of trending down to $0 should things not go as planned.

“There’s also market risk that the company has overestimated its potential market. Management thinks it can sell tickets for a short space flight at about $250,000 apiece and with over 700 deposits, there’s evidence customers are willing to sign up. But those deposits aren’t a final contract and when operations ramp up, it will need as many as 1,565 passengers annually by 2023 if projections are correct.” Travis Hoium wrote. The company’s profitability will be based on meeting these performance projections, the feasibility of which cannot be pre-determined now.

In ramping up plans to go commercial by 2021, Virgin Galactic has appointed Michael Colglazier as its CEO and has joined hands with British aerospace giant Rolls-Royce Holdings PLC to develop a Mach 3 high-speed supersonic travel aircraft. The two companies will work together “in designing and developing engine propulsion technology for high-speed commercial aircraft,” all in a bid to revamp air travels.

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Benjamin Godfrey

Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.

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