By Dhirendra Tripathi
Investing.com – Virgin Galactic stock (NYSE:SPCE) rose nearly 7% Tuesday as Jefferies (NYSE:JEF) initiated its coverage with a buy rating and a $33 target, an upside of 24.5% approximately from the stock’s current level of $26.50.
Analyst Greg Konrad sees attractive long-term prospects of space tourism that could eventually yield a $1.7-billion-revenue company by 2030.
The total addressable market for Virgin Galactic is seen as high as $120 billion. Konrad expects 250,000 travelers at a $450,000 ticket price in less than 10 years from now.
The analyst also pinned his belief that Virgin Galactic can get to 660 flights per year by 2030.
The analyst says Virgin Galactic has a simple business model centered around building spaceships to meet demand. He expects the company to have four spaceships by 2025.
According to the analyst, the company’s business model has been de-risked through recent flights and there are upcoming catalysts for the stock including reopening of seat sales and concrete plans on increasing spaceship capacity.
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