Truist Securities Starts Virgin Galactic (SPCE) at Buy; Can Capture at Least 50% of Space Tourism Market

March 16, 2021 4:07 PM EDT
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Price: $26.79 -8.5%

Rating Summary:
    6 Buy, 4 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 19 | Down: 16 | New: 47
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(Updated - March 16, 2021 4:16 PM EDT)

Truist Securities analyst Michael Ciarmoli initiates coverage on Virgin Galactic (NYSE: SPCE) with a Buy rating and a price target of $50, saying the company can capture at least 50% of the global space tourism TAM by 2030.

The analyst commented, "We believe that as one of the first market entrants, with proprietary technology, vertically integrated operations, and plans for a consumer-oriented experience leveraging the Virgin brand, SPCE is uniquely positioned to capture share in the emerging commercial space tourism industry. We see several near-term catalysts for the shares as the company demonstrates its capabilities through a series of testing activities planned during 2021, and believe that once commercial operations commence (likely in our view in early 2022), demand will significantly exceed supply, providing the company with pricing leverage and enabling margin accretion as the company scales its operations. Ultimately we believe SPCE can capture at least 50% of the global space tourism TAM by 2030. We initiate coverage of SPCE with a Buy rating and $50 price target."

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 $34.80 yesterday.

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