Virgin Galactic News: SPCE Stock Shoots Up 10% on Space Tourism Hopes

Virgin Galactic (NYSE:SPCE) news for Tuesday includes new coverage of SPCE stock sending it higher.

Virgin Galactic (SPCE) billboard on the New York Stock Exchange, across from the Fearless Girl statue.
Source: Tun Pichitanon / Shutterstock.com

The new coverage of Virgin Galactic stock comes from UBS analyst Myles Walton. He hit the stock with a buy rating and a price target of $25 per share. That price target is 57% higher than SPCE stock’s closing price of $15.92 on Friday.

So why is Walton taking a bull stance on SPCE stock? The analyst believes that the company is poised for growth by offering its unique space tourism experiences to customers. The company is moving forward with flight tests and plans to start offering flights to tourists in the next five years, reports TheStreet.com.

Virgin Galactic isn’t the only company that is pushing to offer tourists a look at space. It also has to deal with Elon Musk’s SpaceX, which has been seeing success with recent tests these last few months.

While SpaceX is making strong progress toward offering flights to tourists, there’s still one major reason for investors to check out Virgin Galactic. SpaceX isn’t a public company and investors can’t simply buy stock in it. That means that SPCE stock is one of the only ways to easily make an investment in the space tourism business.

Potential investors in Virgin Galactic will want to go in with an open mind. The company is still reporting losses and revenue is almost nowhere to be seen. However, the possibility for growth is there.

SPCE stock was up 9.5% as of Tuesday afternoon.

On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.


Article printed from InvestorPlace Media, https://investorplace.com/2020/09/virgin-galactic-news-boosts-spce-stock/.

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