Morgan Stanley sees Virgin Galactic cooling off

Feb. 20, 2020 11:09 AM ETVirgin Galactic Holdings, Inc. (SPCE)SPCEBy: Clark Schultz, SA News Editor37 Comments
  • Morgan Stanley is cautious again on Virgin Galactic (SPCE +4.9%) after shares soared past the firm's price target of $22.
  • "Enthusiasm around the emerging space economy has triggered a pace of volume and volatility around SPCE that has taken the MS Space Team by surprise. A modest correction is overdue, and frankly, healthy, in our opinion," warns analyst Adam Jonas.
  • He also raises the question if Virgin Galactic will fire off a capital raise. "While the company has sufficient levels of liquidity to meet the needs of launching its commercial service, investors may nonetheless ask, or even encourage, management to consider adding to the coffers, given unpredictable market conditions and the wide range of commercial applications inherent," notes Jonas.
  • SPCE is up 235% YTD.

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