Virgin Galactic Holdings Inc (NYSE: SPCE) stock has struggled to maintain the bullish momentum we saw earlier this year. The SPCE stock price is currently trading 30% lower over the past 6 months, signalling lower investor sentiment. Nevertheless, the average price target from Wallstreet remains bullish with an average target valuation of $34.82.
With an open FAA investigation and Unity’s test flight being delayed until mid October, investors are wondering what the outlook of SPCE stock forecast looks like. Here is everything you need to know about the SPCE stock forecast.
Recent events impacting the SPCE stock forecast
More recently, Virgin Galactic announced the company had pushed back its next powered flight to midway through October at the earliest. This was due to a potential supplier part issue. In addition, SPCE’s most recent test run entered a protected airspace for one minute and 41 seconds due to high altitude winds.
As a result the FAA have opened an investigation. However Susquehanna analyst Charles Minervino recently noted that their firm has hopes this investigation will be closed soon as the test flight was still a success.
UBS analyst sees SPCE enter service in 2024
Wallstreet analyst Myles Walton from UBS, lowered the firm’s price target on Virgin Galactic to $26 with a Neutral rating. The lower target came after Virgin Galactic pushed back its next test flight. The analyst now sees Virgin Galactic entering the space travel market by 2024. The current target represents a slight upside of 7.17% from the SPCE stock price.
Jeffries analyst sees Virgin Galactic generating $1.7 Billion by 2030
In comparison to UBS, Jefferies analyst Greg Konrad holds a Bullish stance with a $33 price target. The analyst noted that Virgin Galactic has an “attractive outlook” with potential capacity to reach 660 flights per year by 2030 according to TheFly. Furthermore, Konrad added that Virgin Galactic’s addressable market could be worth $120 Billion by 2030. In the same year, the analyst sees Virgin Galactic generating $1.7 Billion. The valuation from Greg Konrad suggests an upside of 36% from the current SPCE stock price.
What is the revenue forecast for SPCE stock?
The first “full revenue” test spaceflight is set to take place in October, which is expects to generate $2 Million. This flight will be a revenue-generating flight with the Italian Air Force.
Looking forward, the average revenue forecast for for the annual year currently stands at $2.19 million. In the most recent quarter, Virgin Galactic generated $571,000 derived from scientific research experiments onboard its May spaceflight test. Analysts expect Virgin Galactic to generate $1.619 Million in the second half of this year as the company did not generate any revenue in Q1.
Furthermore, the average revenue forecast for 2022 expects the company to generate $15.15 Million. It is worth noting Virgin Galactic are yet to release stronger guidance in regards to revenue.
Jefferies analyst Greg Konrad, forecasts revenue to reach $1.7 Billion by 2030. The major catalysts noted in this forecast include Delta space craft production and tailwinds of the space travel industry.
Here are the risks associated with the SPCE stock forecast
The risk- reward scenario for Virgin Galactic is very unique. SPCE stock is one of the only companies publicly trading that will allow investors to enter the exciting new industry of space travel. The safety risk associated can definitely swing the sentiment of this stock. However, I believe the method of travel is not well understood amongst the general public. We recommend having a look at the Virgin Galactic website for information on how they plan to execute commercialisation the space travel industry.
In saying this, the company has faced adversity in the past with a test flight failure in 2014. It is important to understand the unique risks in the SPCE stock forecast and the wider space travel industry.
The Bottom Line – SPCE stock forecast
In summary, SPCE stock has recently seen staggered stock growth due to multiple factors including delays in the next space test flight and the FAA investigation. However, the average Wallstreet valuation remains above the SPCE stock price.
In addition, the next space flight is expected to generate revenue, which will somewhat ease the pressure on the companies cash burn. Lastly, we will continue to update our viewers on the SPCE stock forecast as we move through 2021.
The information above is not financial advice and does not constitute as a recommendation. 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.
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