Can the Virgin Galactic share price take off again?
Virgin Galactic shares surged more than 200% at the start of the year, though those gains were destroyed by the coronavirus pandemic in mid-February. But will the stock take flight again?
Virgin Galactic shares surged more than 200% at the start of the year, though those gains were destroyed by the coronavirus pandemic in mid-February. But will the stock take flight again?
Well, the stock appears to have bottomed out at $10.49 a share last week, with Virgin Galactic seeing its shares climb $7 to trade at $17.80 a share as of 14:25 (GMT) on Thursday, representing a 66% increase.
Looking to trade Virgin Galactic? Open a live or demo account with IG today.
Morgan Stanley optimistic but realistic
The uptick in its price may have something to do with Morgan Stanley analyst Adam Jonas, who upgraded his rating for the stock to ‘buy’ earlier this week, believing that the spaceflight company will see its shares fly higher this year.
But despite his optimism, Jonas slashed his target price for the stock from to $24 a share, down from his previous forecast of $30 –representing a potential upside of around 35%.
‘The world has changed in the past month,’ Jonas said in a note on Tuesday. ‘However, the story and the balance sheet remain intact.’
You can go long or short Virgin Galactic with IG using derivatives like CFDs.
Virgin Galactic outperforms S&P 500 amid Covid-19
The spaceflight tour company has seen significant volatility in recent weeks, with the Covid-19 pandemic wreaking havoc on global equities. But Virgin Galactic has managed to outperform the broader market, with it trading 48% higher year-to-date, while the S&P 500 is down 24% over the same period.
The reason the company has managed to come out on top is because it has no sales, with tickets to take tourists to the edge of space becoming available later this year, leaving investors to speculate on the success of space tourism and its other potential endeavours.
Virgin Galactic has said that it wants to develop hypersonic air travel – five times the speed of sound – which could see long-haul flights take a mere hour to complete.
If the company can achieve its goals its stock could skyrocket, with it able to take a significant chunk out of the air travel industry, which generates around $865 billion in revenues, according to data from the International Air Transport Association (IATA).
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
Seize a share opportunity today
Go long or short on thousands of international stocks.
- Increase your market exposure with leverage
- Get spreads from just 0.1% on major global shares
- Trade CFDs straight into order books with direct market access
Live prices on most popular markets
- Forex
- Shares
- Indices
See more forex live prices
See more shares live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
See more indices live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.
