UPDATE: Bernstein Starts Virgin Galactic (SPCE) at Market Perform

April 12, 2021 4:12 PM EDT
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Price: $19.61 +2.24%

Rating Summary:
    6 Buy, 5 Hold, 0 Sell

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    Up: 11 | Down: 4 | New: 19
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(Updated - April 12, 2021 4:13 PM EDT)

Bernstein analyst Douglas Harned initiates coverage on Virgin Galactic (NYSE: SPCE) with a Market Perform rating and a price target of $27.00.

The analyst comments "We assume a base scenario, where the first commercial flight is delayed to early 2022 (from Sep. 2021). This scenario gives $1.8 bn in revenues in 2030 and $878 mn in free cash flow. Valuation is complicated by long-term uncertainty. In our base case, ~75% of value is in 2030 terminal value, so discount rate and post-2030 growth assumptions are critical. After 2030, growth appears dependent on the base experience (e.g. number of Spaceports) and pricing. It is uncertain how attractive that will be post-2030, as we do not see a move beyond suborbital."

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 $29.28 yesterday.

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