Why Virgin Galactic Stock Popped Today
In twin notes covered by StreetInsider.com yesterday, space analysts at both Cowen and Jefferies Group reiterated their confidence in Virgin Galactic Holdings (NYSE: SPCE) stock as an investment. As Cowen explained in a note that included a lowering of its price target on Virgin Galactic, while "we acknowledge near-term setbacks" -- in the form of an Federal Aviation Administration investigation into a flight plan deviation in Sir Richard Branson's July 11 flight to space, and a subsequent delay of a planned Italian Air Force mission due to a manufacturing defect in one of Virgin's spaceplane parts -- "we continue to view SPCE as an important leader in the commercial space flight industry." Arguing that Virgin's setbacks are "near term" in nature, Cowen insisted the stock should still trade above its current price, and lowered its price target only to $30 a share.
