Why to pay attention to the shares of Virgin Galactic
The experts analyzed the papers of various companies regarding the prospects of income. All interviewed experts advise to pay attention to the shares Virgin Galactic. Richard Branson’s company is engaged in development of spacecraft for launching tourist flights. And Virgin has grand plans – it wants to make its first flight in the next few months. In this regard, the company’s shares have been steadily growing since the end of last year, and analysts are confident that the trend will continue in the future.
It should be noted that the perspective of Virgin Galactic was noted by such an authoritative player on the market as Credit Suisse. The analysts of the latter increased the target value of the space company shares from $22 to $24 per share.
Usually Wall Street is rather stingy for praise and high marks, and in this case the experts were unanimous in their decision. Even in the Dow Jones Industrial index there is no company, which all analysts would advise for investment. There are only three of the S&P 500 such corporations: the industrial giant Teledyne Technologies, the Assurant Risk Management firm and Quanta Services, which provides comprehensive services for the power industry.
Virgin is not a business with large revenues, moreover, the plans for development were significantly undermined by the pandemic. As a result, Coronavirus had to postpone the date of its first commercial flight into space. Initially, they wanted to launch a tourist flight last summer, but postponed it to 2021.
Credit Suisse analyst Robert Spingarn notes that the company has been showing excellent results for quite a long time. It has received approvals for its spacecraft and is actively working on improving them. Tests are successful, which allows optimistically look at the future of the brainchild of the British billionaire.
The other day Virgin Galactic announced that the next test launch of SpaceShipTwo will be held, two pilots will fly. After that they plan to send the aircraft with 4 people. If everything goes smoothly, the first tourist of the company will be its founder Richard Branson.
This news was not left without attention on the stock market, and the next day after the announcement, the company’s shares grew in value by 1.7% and continue to grow in price. In total, the price of Virgin Galactic securities has increased by 51% since the initial placement.
The company is the first one to provide space tourism services. Virgin Galactic plans to carry out suborbital flights, available for tourists. The number of people wishing to go into space is already 600 people from 60 countries. The cost of such a flight is 250 thousand dollars.