Virgin Galactic (NYSE:SPCE) stock is soaring higher on Tuesday after Jefferies analyst Greg Konrad initiated coverage of the company.
Konrad kicked off the firm’s coverage of SPCE stock with a buy rating. That’s worth noting as it has the analyst taking a more bullish stance than the consensus hold rating for the stock. That comes from five buy, eight hold, and two sell ratings for SPCE.
The Jefferies analyst also includes a price target of $33 per share for SPCE stock alongside that rating. That’s actually not as strong as the current consensus price target for Virgin Galactic, which is sitting at $38.29 per share. However, it still represents a potential 32.6% upside for the stock.
So what has Jefferies analyst Greg Konrad taking a bull stance on SPCE stock today? It all has to do with the company’s potential for growth as interest in space exploration continues to be a hot topic for many.
Konrad points out that the increasing interest in the field could support Virgin Galactic launching as many as 660 ships per year by 2030. For comparison, it currently launches 36 per year as of this writing.
That increase in flights also means that Virgin Galactic is poised for higher revenue. According to Konrad, SPCE could see its revenue climb to $1.7 billion by the time 2030 comes around, TheFly.com notes.
Despite the positive analyst letter, SPCE stock is seeing mild movement today. As of this writing, some 18 million shares have changed hands. That’s still far off from its daily average trading volume of about 36 million shares.
Even so, shares of SPCE stock are climbing 9.7% higher as of Tuesday afternoon.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.