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Why Virgin Galactic's Stock Could Rocket Higher On NASA Deal, Upcoming Flight Launch

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Why Virgin Galactic's Stock Could Rocket Higher On NASA Deal, Upcoming Flight Launch

Shares of former SPAC Virgin Galactic Holdings Inc (NYSE: SPCE) are up 140% in 2020, but could see further gains with two upcoming catalysts.

NASA Deal: NASA selected Virgin Galactic as one of two new companies added to a group selected to provide flight and integration services for payloads chosen by NASA’s Flight Opportunities program. This new deal runs through 2023 and comes with a total deal price of $45 million split between the chosen companies.

The deal could be important as the release said the “government intends to acquire payload space on commercial flights, including payload integration systems.” This could lead to future contract wins for Virgin Galactic from NASA.

Related Link: Virgin Galactic Has Long Term Potential, Short Term Risks: Goldman Sachs

Flight Window Coming: Virgin Galactic also announced its flight window opens on Dec. 11 for test flights of its commercial aircraft. This flight was delayed earlier this year due to the COVID-19 pandemic.

Virgin Galactic will reduce the number of team members and not allow media at the event to help meet requirements for the New Mexico Department of Health.

This flight has been long anticipated and could be the major catalyst the company needs to start planning out its commercial flights for space tourists. The flight will also take payloads under the NASA Flight Opportunities program.

Virgin Galactic said the flight will fulfill a number of objectives including testing the elements of the cabin and upgrading horizontal stabilizers and flight controls during boost.

“We look forward to completing this important milestone in our test flight program in the coming weeks,” said Virgin Galactic CEO Michael Colglazier.

SPCE Price Action: Shares of Virgin Galactic are down 4% to $27.22 on Wednesday.

Virgin Galactic visits the New York Stock Exchange to celebrate its listing. Richard Branson rings The First Trade Bell. Photo courtesy of Courtney Crow.

 

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