Virgin Galactic Shares Explode After Two More Analysts Initiate Coverage

Shares of Virgin Galactic saw a jump of 25% on Monday, its second best day ever since debuting last year, after Wall Street now has given the stock unanimous buy ratings from eight analysts.

The stock jumped on the news that Bank of America and Susquehanna have initiated coverage on the stock, joining the six others who have recommended Virgin Galactic to investors.

There are now only eight “buy” ratings on the stock with zero hold or sell ratings.

“No company in our coverage universe has anywhere near comparable growth potential,” Bank of America analyst Ron Epstein commented.

Bank of America called Virgin Galactic’s growth potential “unparalleled” but said investors needed to be aware of risks, such as the potential for a fatal accident.
“Virgin Galactic has a unique business with leading market position. The only sub-orbital space tourism competitor in existence (Blue Origin) has not ever flown passengers,” the bank’s note also said.

“The long-term opportunities in space tourism and hypersonic point to point travel are nearly revolutionary,” the firm said. “Purchasing shares of Virgin Galactic today offers investors the opportunity to get into a company at the very beginning of its growth story. No company in our coverage universe has anywhere near comparable growth potential.”

The bank also said that Virgin Galactic has a strong management team that includes Chief Space Officer George Whitesides, who spent more than 20 years at NASA, and CEO Michael Colglazier, who spent more than 30 years at Disney, most recently managing its international parks division.

Shares of Virgin Galactic are up about 78% this year.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.