Virgin Galactic shares have risen sharply in US stock exchanges today after ff Eferiz provided a Bulgarian note to the space tourism company. Virgin was ahead of its rivals և Sir Richard Branson became the first billionaire to reach space.
While Virgin Galactic shares have risen since the company made a successful flight with Branson, they have since fallen. Immersion in the ff eferi, on the other hand, falls as a buying opportunity.
Je Eferz released a bullying note about Virgin Galactic
Analyst Greg Conrad initiated coverage of Virgin Galactic shares with a buy rating of 33 $ 33 target price. According to brokerage estimates, when a company has four spacecraft in its belt, it could generate $ 440 million in revenue by 2025 and then $ 1.7 billion in revenue by 2020. The company’s market value is about $ 7 billion, which gives us a multiplier of 2030 -4.1x sales.
“The business model is simple. “More customers + more spacecraft to meet demand is bringing the top line,” Conrad said in a note. The broker surveyed 233 people with a fortune of more than $ 1 million. The results showed that one third of the respondents were interested in going to space, which shows the market potential of space travel.
Although the high price of tickets booked by Virgin is the main selling point, it says about 250,000 people have the means to interest in space travel. “As wealth grows, so does the 120 120 billion market area over time, which we believe is largely unused,” said Conrad.
During its second-quarter revenue call, Virgin Galactic raised ticket prices, saying it had received 600 bookings so far. The company has maintained three levels of pricing, which include single, multi-seat and full house booking.
“We have a range of product offerings to cater to the different ways in which people would like to share their private astronaut flight experience,” said Michael Colglazier, CEO of Virgin Galactic, when announcing the revenue.
The company estimates that the astronomical TAM (total target market) is $ 900 billion and intends to target the end of the premium, which it estimates is one third of the total market.
Space war is heating up among billionaires. Along with Virgin Galactic, founded by Richard Branson, Tesla CEO Elon Musk and Amazon CEO FF Bezos have space travel companies. Musk even started accepting Dogecoin as his private SpaceX payment method. Bezos made his first space flight. Many are said to be critical of the billionaires who travel to space as the world battles the COVID-19 epidemic.
Virgin Galactic Stock Exchange forecast
Looking at the consensus ratings, only three out of 10 analysts covering Virgin Galactic shares have a buy rating, and five rate them as a reserve. The other two analysts have a sales or equivalent rating. The average target price of $ 33 per share assumes an increase of almost 23%.
Wall Street analysts disagree with Virgin Galactic. Before Branson’s flight, Cowen set the street target at $ 51. “We are more positive about the prospects for a successful commercial spacecraft program in 2022. “Visibility, marketing և ticket sales should support the rating,” said Cowen analyst Oliver Chen.
Analysts are divided
He noted. “Possible delays in other test flights, technical problems that may result from test flights, failure to achieve SPCE profitability, any safety issues or technical failure, և higher competition” as the company’s main risks.
However, after the flight, Bank of America halved the low value of its securities. Shares fell after Branson’s flight. The positive results seemed to be baked in storage before the plane took off. In addition, the company announced the sale of $ 500 million worth of shares after the flight, which further eased the mood.
How to invest in Virgin Galactic Fund
Overall, Virgin Galactic shares seem like a good bet for the space travel industry. You can invest in space exploration stocks like Virgin Galactic through popular online brokers. Alternatively, if you want to trade in derivatives, we have also reviewed a list of derivative brokers you can consider.
An alternative approach to investing in space exploration could be investing in ETFs that invest in space exploration companies.
With ETFs, you can diversify your risks across many companies instead of just investing in a few companies. Or it may mean you can skip the “home runs” but not own the worst shares in your portfolio. Katie Wood’s ARK Invest, the space exploration ETF, launched earlier this year.
By investing in an ETF, you get the revenue associated with the underlying index after calculating fees և other transaction costs. There is a guide on how to trade in ETFs.