Virgin Galactic (SPCE) Delays to Unit 23 Have No Impact on Demand - Jefferies

Jefferies analyst Greg Konrad reiterated a Buy rating and $33.00 price target on Virgin Galactic (NYSE: SPCE) after the announcement of a pending FAA incident that pushed out the next Virgin Galactic flight, Unity 23, and potentially could delay the following Unity 24 flight, scheduled for Q3 2022.

The analyst stated "We view these items as timing related, rather than changing the trajectory of the revenue profile. The events are also independent of the ramp of the Delta class design and production, key to providing capacity to support growing demand. It is not yet known how the delay of Unity 23 will impact the EVE enhancement period (expected after Unity 23 to increase the durability of the mothership). This was expected to lead to a Q3 2022 Unity 24 flight, a crewed flight to validate enhancements of EVE, w/ a Late Q3 2022 flight (Unity 25) marking the start of commercial service. In our view potential risk is more timing related rather than the forecasted revenue trajectory."

For an analyst ratings summary and ratings history on Virgin Galactic click here. For more ratings news on Virgin Galactic click here.

Shares of Virgin Galactic closed at $23.91 yesterday.

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