+ 2.37
+ 1.66%

Virgin Galactic's Stock Will Come Back Down To Earth: Morgan Stanley

February 20, 2020 12:50 pm
Share to Linkedin Share to Twitter Share to Facebook Share to Print License More
Virgin Galactic's Stock Will Come Back Down To Earth: Morgan Stanley

What goes up, into the stratosphere and in the stock market, often will also come down, and that's likely to be the case with the soaring stock of Virgin Galactic Holdings Inc (NYSE:SPCE), Morgan Stanley said Thursday.

Investors appeared to agree, as the stock was down more than 5% Thursday after a big run up this month that has seen the stock roughly double in value.

The Virgin Galactic Analyst

Morgan Stanley's Adam Jonas continues to have an Overweight rating on Virgin Galactic with a $22 price target.

The Virgin Galactic Thesis

"A modest correction is overdue, and frankly, healthy, in our opinion," Jonas wrote in a Thursday note. The run up has taken several analysts by surprise, with no obvious catalyst in the last few weeks, other than potentially growing awareness and excitement around the prospect of space tourism.

Just this week, a Virgin Galactic competitor, Elon Musk's privately-held SpaceX said it has agreed to fly four private customers into orbit later this year. Virgin Galactic has previously said it plans its first commercial flight, carrying its founder, Richard Branson, later this year.

"Enthusiasm around the emerging space economy has triggered a pace of volume and volatility around SPCE that has taken the MS Space Team by surprise," Jonas wrote, adding that the stock "deserves a bit of a breather."

Virgin Galactic reports fourth quarter results on Feb. 25.

SPCE Price Action

Virgin Galactic shares were trading down 5.4% at $35.30 at publication time Thursday.

Related Links:

PreMarket Prep Stock Of The Day: Virgin Galactic

Lift Off: Virgin Galactic Stock Keeps Going Higher

For the latest in financial news, exclusive stories, memes follow Benzinga on Twitter, Facebook & Instagram. For the best interviews, stock market talk & videos, subscribe to our YouTube channel.

Related Articles

'Space Tourism Is Hard But Still A Reality': Why Analyst Cut Virgin Galactic's Price Target After Flight

Shares of Virgin Galactic Holdings Inc (NYSE: SPCE) had a strong move on Monday after a successful test flight to space over the weekend. An analyst sized up the timeline for the company and what’s ahead. read more

UBS Upgrades Virgin Galactic, Sees String Of Bullish Catalysts Ahead

Virgin Galactic Holdings Inc (NYSE: SPCE) shares traded higher by another 4.2% on Friday after the stock landed a major Wall Street upgrade. The Analyst: UBS analyst Myles Walton upgraded Virgin Galactic from Neutral to Buy and cut his price target from $40 to $36. read more

Space Race: The Top Players In A Market That Could Be Worth $1.4 Trillion By 2030

Bank of America is out with a guide to the commercial space market and the major companies involved. The Space Market: Bank of America’s Ronald J. Epstein believes the commercial space market will hit $1.4 trillion by 2030. Epstein cites increased defense spending, growth in satellites, space tourism and resource extraction as ways the industry can grow. read more

Tesla's Stock And SpaceX Launches: Are Traders Looking For A Connection?

Tesla Inc (NASDAQ: TSLA) and SpaceX have CEO Elon Musk in common...and that's just about it. But are some traders using Tesla’s stock as a vehicle to trade or invest in Musk’s privately-owned space exploration company? read more