Vertical Research Partners is the first firm to begin covering Virgin Galactic, initiating the space tourism venture’s stock with a “buy” rating and saying its risk “is misunderstood.”
“We think the technical risk to SPCE’s human spaceflight program is less draconian than the stock appears to be pricing in,” analyst Darryl Genovesi said in a note to investors.
Virgin Galactic began trading publicly last week, following the completion of its merger with Chamath Palihapitiya’s venture Social Capital Hedosophia. Genovesi sees Virgin Galactic, ticker ‘SPCE,’ as a standout for being the only stock investors can trade in a niche but growing market.
“SPCE is the only means by which a public equity…