Virgin Galactic shares surge above 20% as Wall Street continues to recommend the company

Virgin Galactic shares jumped over 22% on Monday trading after Wall Street continued to recommend the space travel business to investors and customers.

The space company’s stock surged after Bank of America and Susquehanna gave positive reports about the company sending the company’s shares as high as 16% Four other firms had earlier recommended Virgin Atlantic’s stock to investors which gave the space travel company eight Wall Street buy ratings.

“The long-term opportunities in space tourism and hypersonic point to point travel are nearly revolutionary,” said Bank of America analyst Ron Epstein. “Purchasing shares of Virgin Galactic today offers investors the opportunity to get into a company at the very beginning of its growth story. No company in our coverage universe has anywhere near comparable growth potential.”

Bank of America rated Virgin Galactic a “buy” on Monday with a $35 price target, up 113% from Friday’s close. The bank said Virgin Galactic’s growth was “unparalleled” but advised investors to watch out for risks such as possible fatal accidents that could lower consumer demand for commercial airspace travel.

Despite the possible risks that could arise from Virgin Galactic’s coming space travel, its business is still unique and the company holds the market position, with less competition.

“Virgin Galactic has a unique business with a leading market position. The only sub-orbital space tourism competitor in existence (Blue Origin) has not ever flown passengers,” the firm said.

Since Virgin Galactic’s stock market debut last year, the company has been on track for its fourth-biggest surge in a trading day. So far this year, the company’s stock is up more than 70% even though the space tourism company is yet to begin commercial services. It also lacks adequate revenue, with losses of more than $50 million quarterly as it wraps up the final stages of developing its spacecraft.

Virgin Galactic still has two key test flights before it goes full-time commercial. In August, the company told shareholders that it has a target to fly Sir Richard Branson, Virgin Galactic founder (link) to space in the first quarter of 2021 which will officially mark the start of its commercial service.

Virgin Galactic is a space-exploration company that went public in 2019 via a special-purpose acquisition company. The company has received quite a number of positive reviews since its debut as many customers await its commercial services. The space company is both focused on hypersonic point-to-point travel and space tourism.