Virgin Galactic Holdings Inc (NYSE:SPCE) is trading lower Wednesday morning following a downgrade by BofA Securities.
What Happened: On June 25, the FAA updated Virgin Galactic’s existing commercial space transportation operator license that the company has held since 2016, allowing it to fly customers to space. Following the news, the stock surged nearly 40% higher.
BofA Securities analyst Ronald Epstein downgraded Virgin Galactic from Buy to Underperform and announced a $41 price target today.
“We continue to see Virgin Galactic as a beneficiary of the new commercial space race. However, we believe this premium is already priced into the stock and will dwindle as more commercial space companies go public,” Epstein said in a note.
Price Action: Virgin Galactic has traded as high as $62.80 and as low as $14.27 over a 52-week period.
At last check Wednesday, the stock was down 4.27% in premarket trading at $45.01.
Photo: courtesy of Virgin Galactic.
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