Virgin Galactic Holdings Inc. shares slipped 0.7% in midday trading, but Vertical Research Partners Darryl Genovesi reiterated his buy rating, as a call he had with Chief Executive George Whitesides supported his bullish conviction on the space vehicle maker. Genovesi kept his stock price target at $29, which is 89% above current levels. “We are incrementally positive on the [Virgin Galactic] story post our call, which focused on recent Space Act agreement with NASA and what sounds like good progress toward commercialization at the core suborbital space tourism business, even in this unprecedented environment,” Genovesi wrote in a note to clients. “We continue to view [Virgin Galactic] as thematically attractive as it is the only means by which a public equity investor may gain pure-play exposure to human spaceflight or ANY exposure to space tourism while [Virgin’s] financial targets are also very attractive if achievable and recent progress helps bolster our confidence in its ability to deliver.” The stock has rallied 32.6% year to date, while the S&P 500 has lost 4.6%.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
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