Virgin Galactic Could Push For Sir Richard Branson To Join Crewed Flight: Analyst

Shares of Virgin Galactic traded higher Friday after receiving FAA certification to take passengers to space.

A Virgin Galactic analyst discussed the possibility of founder Sir Richard Branson flying into space in a new note. 

What Happened: After the success of the May 22 VSS Unity flight, Virgin Galactic Inc SPCE received FAA approval. The company met key objectives on the test flight that set it up for future flights to space with passengers.

The new FAA approval could expediate the company’s timeline and lead to a rumored space flight for founder Sir Richard Branson in July. A space race could emerge between Virgin Galactic and Blue Origin to see which company can get to space first.

Blue Origin, founded by Amazon.com Inc AMZN founder Jeff Bezos, is scheduled to take Bezos to space July 20.

“While the company has not yet updated its prior schedule, we believe it is pushing for Sir Richard Branson to be on the next crewed flight in early July,” Canaccord Genuity analyst Ken Herbert said.

The analyst, who has a Buy rating and $35 price target, points to the PR benefits and visibility on public reservations for Virgin Galactic being reopened if Branson can beat Bezos to space.

Related Link: Jeff Bezos Vs. Richard Branson: Who Will Get To Space First? 

What’s Next: Virgin Galactic had previously guided for full commercial service beginning in the first quarter of 2022.

“The passenger certification likely opens the door to flying Virgin’s first space tourists sooner than anticipated,” Herbert said.

The next test flight of Unity could take place over the July 4 weekend and might feature Branson as a passenger, the analyst said. 

“We continue to expect SPCE to be catalyst-driven, and the FAA authorization today should be a positive catalyst for the stock.”

Upcoming catalysts include three remaining test flights, the reopening of the sales reservation process and the launch of competitor Blue Origin’s space capsule July 20, he said. 

SPCE Price Action: Shares of Virgin Galactic were trading 38.55% higher at $55.78 at last check Friday.

Disclosure: Author is long shares SPCE.

Photo: a Virgin Galactic spaceship.