Original title: hundreds of billions of dollars in the space travel market! Virgin GalaxyHearing the news soar, analysts say it is expected to rise by another 20%.
Shares of space travel company Virgin Galactic surged nearly 9% on Tuesday, benefiting from upbeat comments from wall street, which has hundreds of thousands of potential customers.
Virgin Galactic shares rose 8.96% to $27.11 at the close of trading on Aug. 31, up 14.24% so far this year, but less than the 20.41% rise in the S & P 500 over the same period. Virgin Galactic's shares have been volatile this year, soaring to $62.80 in mid-February, then falling back below where they were at the start of the year, but have since recovered.
Virgin Galactic's successful launch of Virgin Group founder Richard Branson (Richard Branson) into space on July 11, completing its first manned space flight, made history, a news that seems to have inspired many people's desire to experience space wonders, especially those who can afford high flight prices, so Virgin Galaxy's market opportunities may be much greater than many investors had expected.
Greg Conrad (Greg Konrad), an analyst at investment bank Jefferies, gave Virgin Galactic a "buy" rating in a research report on Aug. 31, with a target price of $33 per share, 21.7% higher than the closing price on Aug. 31, because space tourism is a huge new market, and Virgin Galaxy has a first-mover advantage and the ability to make amazing profits from it.
Conrad surveyed 233 people with wealth of more than $1 million, of whom 37% were interested in experiencing space flight and 29% were willing to spend more than 5% of their total assets. Conrad inferred that the potential market for space tourism will reach about $120 billion. There are as many as 250000 potential customers, or 10 per cent of 2.5 million people with a net worth of more than $10 million, at a cost of $450000 per flight.
To meet this demand, Virgin Galaxy must increase the number of flights a year to 660 by 2030, Conrad said. Based on the capacity of the Virgin Galactic spaceship to accommodate six passengers, it is estimated that by 2030, Virgin Galactic will have revenue of $1.7 billion and operating profit of $680 million. The increase in the number of spaceships also plays a key role. Jefferies estimates that Virgin Galactic will have four spaceships by 2025 and 14 by 2030.
It was previously reported that Virgin Galactic announced the resumption of the sale of space travel tickets, with a single seat price of $450000, up sharply from $200000 many years ago.