What are analysts saying about Virgin Galactic?
- SPCE currently have 600 “large” deposits from customers eager to be the first to fly commercial in 2021. With another 8000 smaller deposits according to the BofA analyst. The long line of customers suggests initial demand will be high throughout 2021 and beyond. If SPCE are able to launch successfully in the first quarter of 2021, the bullish revenue projections should hold true for 2021-2022. Read the section below to see revenue 2021 forecasts.
“We saw continued growth in customer demand, with increases in paid enrollments for our ‘One Small Step’ program, and entered into deposit agreements for orbital spaceflights with twelve customers.” said George Whitesides, Chief Space Officer of Virgin Galactic.
- The fundamentals of vertical integration on a basic level is the strategy of buying your supplier to reduce costs in the long term. With SPCE building their own spacecrafts and engines from start to finish, the costs and quality control will remain within the companies boundaries. The reason why Ron Epstein mentions this in his price target evaluation is because it “mitigates execution risks” as we get closer to launch date. This is a big tick for long term shareholders moving forward.
- The risk associated with Virgin Galactic stock is still high. As they pave the path forward to commercialising space travel, the road ahead is going to be experimental. This will continue to be a monumental challenge for the SPCE executives and board members. This is definitely something the Bears are arguing as we move into 2021.
What are the forecasts moving into 2021 and beyond?
Before I begin, I remind our viewers that this is not advice but rather investment commentary from extensive research.
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The information above is not financial advice. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you.