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 and spread bets.
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).
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. 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. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Act on share opportunities today
Go long or short on thousands of international stocks with spread bets and CFDs.
- Get full exposure for a comparatively small deposit
- Trade on spreads from just 0.1%
- Get greater order book visibility with direct market access
See opportunity on a stock?
Try a risk-free trade in your demo account, and see whether you’re on to something.
- Log in to your demo
- Take your position
- See whether your hunch pays off
See opportunity on a stock?
Don’t miss your chance – upgrade to a live account to take advantage.
- Trade a huge range of popular stocks
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See opportunity on a stock?
Don’t miss your chance. Log in to take advantage while conditions prevail.
Live prices on most popular markets
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
