Like the upcoming test flight this weekend, Virgin Galactic Holdings (NYSE: SPCE) stock is poised for a strong start. An analyst following the stock, Myles Walton of UBS (NYSE: UBS), raised his rating for the stock from neutral to buy on Friday.
It did so despite the analyst’s lowered price target, which he believes is now $ 36 instead of $ 40. Even with this cut, Virgin Galactic still has plenty of room to grow. Walton’s new level implies a gain of nearly 71% from the stock’s last closing price.
Walton is encouraged by this and finds another important reason to be positive about Virgin Galactic. “We feel that the faster pace of Blue Origin offering commercial services is worth watching, but we are also encouraged that the pricing and pricing be done carefully in the short term (as shown in the figure) [roughly] $ 3 [million] current bid price for the first Blue Origin seat with a 3-week bid). “
Blue Origin is the commercial space tourism company founded by Amazon.com (NASDAQ: AMZN) founder and CEO Jeff Bezos. Earlier this week, the Amazon Honcho company announced the results of the auction for its first space ticket. The main bid was a whopping $ 2.4 million.
As a result: “We are still positive about the foundations of the EU [Virgin Galactic] Offering as well as the scarcity of experience offered to customers, ”wrote Walton.
Though it’s still in its infancy, the dual effects of the new test flight and robust demand for this spaceflight ticket ensure that Virgin Galactic’s shares get a real zip. Walton’s hopeful note helps too. On Friday, the company’s shares closed 6.4% higher.