Virgin Galactic's (SPCE) Eve test flight an 'important milestone'

Virgin Galactic Holdings (NYSE: SPCE) shares are gaining Thursday, a day after its Eve mothership took off for its first test flight since undergoing mechanical upgrades.

The company's shares rose more than 13% Wednesday, while they have risen a further 2% Thursday. The stock is now up over 71% this year.

Virgin Galactic said in a press release that Eve was handed over to the Flight Test team yesterday under the direction of Senior Flight Test Director Kelly Latimer.

Reacting to the news, Wells Fargo analyst Matthew Akers told investors in a note that the test flight is an important milestone toward Virgin Galactic's planned customer service launch in the second quarter.

The analyst, who has an Underweight rating and a $3 per share price target on the stock, said in a research note: "According to FlightAware, Virgin Galactic's mothership (Eve) took off at 10:30am PT today on what may be its first test flight since undergoing mechanical upgrades.

"SPCE previously commented that it expected to complete upgrades on the aircraft during Q4, with flight tests commencing in early 2023."

The analyst noted that Virgin Galactic expects Eve to return to its New Mexico home base after the mothership is checked out to commence with a glide flight of the VSS Unity spacecraft followed by a flight to space with company mission specialists on board.

By Sam Boughedda

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