BofA Maintains Underperform Rating As Virgin Galactic Begins Selling Space Flight Tickets

Virgin Galactic Holdings Inc (NYSE: SPCE) has announced the opening of space flight ticket sales to the public on Feb. 16. Reservations are being offered at $450,000, with an initial deposit of $150,000, according to BofA Securities.

The Virgin Galactic Holdings Analyst: Ronald Epstein maintained an Underperform rating on Virgin Galactic Holdings, with the price target unchanged at $10.

The Virgin Galactic Holdings Thesis: The reservation offers prospective passengers a ticket to space, pre-flight training as well as additional experiences as perks for joining the company’s “Future Astronaut” community, Epstein said in the note.

These perks encompass “money-can’t-buy experiences, events, trips and space-readiness activities” being planned ahead of the suborbital flight, the analyst indicated.

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“CEO Michael Colglazier announced that the company intends to register 1,000 customers for spaceflight by entry into service, which is slated for 4Q22,” Epstein wrote. “While current interest levels would indicate that such a goal is attainable, we will await updates on the current spacecraft enhancement program before reconsidering our estimates,” he added.

SPCE Price Action: Shares of Virgin Galactic Holdings had declined by 4.93% to $10.21 at the time of publication Wednesday.

Photo: Courtesy of pressftp.virgingalactic.com