Coinspeaker
Virgin Galactic Shares Up 1.5% in Pre-market, SPCE Stock Earlier Bullish Call Receives Rebuffs from Two Analysts

Following a Coinspeaker report on the bullish call on Virgin Galactic Holdings Inc (NYSE: SPCE) stock price by Bank of America Corp (NYSE: BAC), two analysts have expressed an almost antagonistic price call for the stock. Per the report from CNBC, Nancy Tengler, chief investment officer at Laffer Tengler Investments, noted that the customer base may not be there for Virgin Galactic (SPCE) to make good of the bullish stock price call previously placed by BofA analysts.

“I’d like to see people returned to commercial air flight before we spend too much time thinking about the potential although it captures your imagination,” shed said. “I understand why people are excited about it. Two hundred thousand to $250,000 a ticket, however, limits the potential clients, so I think we need to see them begin operations and that happens in the first quarter of 2021. And then see where we go from there and how this catches on,” added she.

Recall that in our earlier report, Ron Epstein-led analysts at the Bank of America, stated:

“While Virgin Galactic is not yet operational, the company is gearing up to begin serving customers in early 2021. We believe SPCE’s growth potential is unparalleled vs. our coverage and the current nascent stages of the company provide investors with a unique entry point into the stock.”

Apparently, the non-profitable position of the company has been formally tipped as yardstick not to overvalue the potential of the stock. As CNBC also noted, New Street Advisors founder Delano Saporu also stated that the stock’s fundamentals are keeping him away. He explained:

“The company still isn’t profitable. Commercial operations haven’t begun. But you know there is some compelling growth story, but we really want to see this play out over time, first and foremost.”

SPCE stock may however maintain its current momentum to get back to its bullish February highs which is still remarkably trading at about 50% below. The potential for this to happen to revolves around the plans by the company to deploy its high-speed space crafts for commercial purposes, transporting people around the globe.

“While this is a far off revenue stream and other competitors are ahead of (Virgin Galactic stock) on hypersonic aircraft development, we recognize that Virgin Galactic’s unparalleled vertically integrated manufacturing system gives the company somewhat of an advantage in this market,” the BofA note said.

Virgin Galactic (SPCE) has appointed Michael Colglazier as its CEO and has joined hands with British aerospace giant Rolls-Royce Holdings PLC to develop a Mach 3 high-speed supersonic travel aircraft, all in a bid to stay revamp the commercial travel system. With the obvious stride the firm is making, the share growth rebuff from Nancy Tengler and Delano Saporu are worth taking note of by Wall Street investors.

As at the time of writing, SPCE stock closed $20.51 (24.83%) on Monday and rose 1.56% in pre-market

Virgin Galactic Shares Up 1.5% in Pre-market, SPCE Stock Earlier Bullish Call Receives Rebuffs from Two Analysts

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