Virgin Galactic (SPCE.US) stock fell over 14.0% during today's session after the space tourism company decided to delay the launch of its commercial space service to the fourth quarter of 2022 from the third quarter. This is in connection to an enhancement program announced today for its VMS Eve and VSS Unity. The new delay follows routine laboratory tests which revealed some of the materials the company was using were weaker than expected, which requires "further physical inspection". Michael Colglazier, Chief Executive Officer of Virgin Galactic, said: “The re-sequencing of our enhancement period and the Unity 23 flight underscores our safety-first procedures, provides the most efficient path to commercial service, and is the right approach for our business and our customers.”
In response to the news Bank of America lowered its price target on the stock from $25.00 to $20.00 and currently has an underperform rating on the stock. Bank analyst Ronald Epstein said: “Commercial operations are still expected by the end of 2022, however, we are uncertain about the company’s ability to forecast such a future and unknown event after the recent failure to call the timing right on a relatively-known short-term event.”
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Virgin Galactic (SPCE.US) stock launched today's session with a massive bearish price gap. If current sentiment prevails, downward move may accelerate towards support at $14.60 where May lows are located. On the other hand, if buyers manage to regain control, then another upward impulse towards resistance at $23.55 may be launched, which coincides with 78.6% Fibonacci retracement of the last upward wave and 50 SMA (green line). Source: xStation5
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