Virgin Galactic Holdings (SPCE – Research Report), the Technology sector company, was revisited by a Wall Street analyst today. Analyst Oliver Chen from TD Cowen remains neutral on the stock and has a $2.50 price target.
Oliver Chen’s Buy rating for Virgin Galactic Holdings (SPCE) was influenced by several key factors.
Firstly, SPCE has successfully completed four commercial flights and has plans for two more in the first half of 2024. The company has also exceeded expectations by reporting third quarter revenues of $1.7 million, above the Street’s prediction of $1.1 million. Furthermore, SPCE’s Free Cash Flow (FCF) burn was also less severe than anticipated, and the company has reassured investors that its $1.1 billion liquidity will be sufficient to achieve positive FCF by Fiscal Year 2026.
Chen also highlighted the potential for scalable profits from SPCE’s operations.
The company’s two Delta Class spaceships, which can carry six passengers each, are expected to generate substantial yearly revenue. The revenue per flight will depend on the mix of private astronauts flying at $450,000 each and research seats at $600,000 each. Chen also noted that SPCE has $113 million remaining in an at-the-money equity offering, providing a financial cushion if needed. Moreover, the upcoming flights in 2024 will yield more revenue due to the availability of an extra seat, previously reserved for SPCE training personnel.
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Virgin Galactic Holdings (SPCE) Company Description:
Virgin Galactic Holdings Inc is a United States-based vertically-integrated aerospace company pioneering human spaceflight for private individuals & researchers, and it also manufactures advanced air and space vehicles. Using its technologies, it is developing a spaceflight system designed to offer its customers a unique, multi-day, and transformative experience. This culminates in a spaceflight that includes views of Earth from space and several minutes of weightlessness that will launch from Spaceport America, New Mexico.
Read More on SPCE:
- Virgin Galactic (NYSE:SPCE) Rises on Impressive Q3 Print
- Virgin Galactic options imply 11.6% move in share price post-earnings
- Options Volatility and Implied Earnings Moves Today, November 08, 2023
- Virgin Galactic (NYSE:SPCE) Trims Workforce to Fund Delta Class Project
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