Aerospace and space travel company Virgin Galactic (NYSE:SPCE) announced that its commercial spaceline operations will embark between the launch window of June 27 to June 30. The news set the company’s stock on fire in Thursday’s after-hours trading, with shares rallying about 44%. While SPCE has lost about 12% of its value over the past three months, it is up more than 16% year-to-date.
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Named, Galactic 01, the first commercial space flight will have three members onboard from the Italian Air Force and the National Research Council of Italy to conduct research on microgravity. It will reportedly fly out of Spaceport America in New Mexico.
In addition, Virgin Galactic is targeting a second commercial flight, Galactic 02, in early August, followed by monthly commercial flights. The second flight may carry tourists who paid initial deposits on seats a few years ago.
The Richard Branson-founded company completed its final test spaceflight in May. Branson’s second satellite launch company, Virgin Orbit, filed for Chapter 11 bankruptcy in April.
What is the Future of SPCE Stock?
Of the seven Wall Street analysts covering SPCE stock, four rate it a Hold while three have a Sell rating. Overall, Wall Street has a Moderate Sell consensus rating.
On Thursday, Alembic Global analyst Peter Skibitski upgraded the stock to Hold from Sell with a price target of $4.75 (17% upside potential). Last month, Morgan Stanley analyst Kristine Liwag reaffirmed a Hold rating on the stock with a price target of $4, citing the company’s progress towards its commercial flight operations.
Meanwhile, Virgin Galactic saw a wider-than-expected loss in its recent quarter. Over the past year, the stock’s value has eroded 29.8% due to delays in commercial services launch.
