By Dhirendra Tripathi
Investing.com – Virgin Galactic (NYSE:SPCE) stock plunged 14% Wednesday on a downgrade from Morgan Stanley (NYSE:MS) after the company’s sole mothership, Eve, was grounded for enhancements for eight months starting in September.
Analyst Kristine Liwag sees the stock at $25, which is now just 6.6% away after today’s slump.
During the maintenance period, Virgin Galactic will not conduct any space flights until summer of 2022, according to StreetInsider.
While analyst Kristine Liwag views this positively as the company is investing in increasing its long-term space flight capacity, she said such investments take time.
The enhancements planned will enable Eve to fly more than once per week. Before it is grounded, Eva has a flight scheduled in September.
According to Liwag, another successful flight could be a catalyst for the stock.
In addition to one mothership, Virgin Galactic currently has one operational spaceship, Unity, which will also be soon going for enhancements. The company is also developing its Delta-class spaceship, which will have a one-week turnaround time.