Virgin Galactic Stock soars after 2 other analysts say buy now
kept his perfect record with Wall Street on Monday when two other analysts began covering the space tourism pioneer with buying ratings. The positive reports have skyrocketed galactic stocks. The company’s estimated sales in 2021 are tiny, but both analysts see huge markets growing down the road.
Susquehanna Analyst Charles Minervino tell customers to buy, as the Bank of America analyst did Ronald epstein. Minervino’s price target is $ 20 per share. Epstein is more bullish, with a price target of $ 35.
Eight analysts now cover the stock and it is unusual for all to rate Buy stocks. The mean Purchase rating ratio for shares of
is about 58%. Only a few stocks do not have a Hold or Sell rating.
The average analyst price target for Galactic is around $ 26 per share. The stock rose 23% to $ 20.20 on Monday afternoon. The galactic stock has a hell of a race. Shares are up 70% year-to-date, better than comparable gains in the
and the Dow Jones.
The company, however, does not yet have substantial sales. Galactic is a pioneer in space tourism, with plans to take non-astronauts into low Earth orbit. This is a new market for high net worth individuals, and the company has hundreds of reservations.
Ultimately, the company plans to develop hypersonic flight. It’s a flight at multiples of the speed of sound, which could cut the flight time from New York to LA to less than two hours.
Epstein sees sales reach $ 8 million in 2021 and climb to $ 257 million by 2024. Minervino sees positive free cash flow around 2023 to 2024. Lack of cash flow is a risk, Minervino wrote. “However, we adhere to the vision that [Galactic’s] future business opportunities may expand considerably more than what is currently seen. These opportunities include things like hypersonic travel and astronaut training for Nasa.
Epstein thinks the total space tourism market is important. “According to Virgin Galactic, the company’s target audience is adults with a total net worth exceeding $ 10. [million]”Epstein wrote. They are two million, according to Galactic. “However, we do note that the company mentioned that many clients have an estimated net worth of significantly less than $ 10. [million]. “The opportunity for hypersonic travel is even greater, but Epstein isn’t modeling substantial hypersonic sales until 2040.
It’s far, but not far enough to prevent analysts from recommending stocks and investors from buying the stocks.
Write to Al root at [email protected]