Virgin Galactic aborted the first powered test flight of its spaceplane on Saturday despite getting the all-clear before launch, Sky News reported.
The spaceplane was released from under its carrier aircraft at an altitude of about 40,000 feet, but the spacecraft’s engine shut down after igniting momentarily. No passengers were on board and pilots, CJ Sturckow and Dave Mackay, were able to glide the spacecraft back to base safely.
The full impact of Saturday’s aborted test flight is uncertain at this time.
Virgin Galactic (SPCE) aims to begin commercial operations after a series of three final test flights have been completed. Saturday’s failure to launch would have been the first in the series and company founder, Sir Richard Branson, is scheduled to personally be on board the third test flight in Q1 2021.
Five spaceplanes carrying tourists into sub-orbital space will make up Virgin Galactic’s fleet and the goal is to offer space tourism flights by as early as next year. Virgin Galactic already has more than 600 customers who have committed to the $250,000 price per seat, including Justin Bieber and Leonardo Dicaprio.
Demand for tickets is reportedly high and Virgin Galactic expects to raise ticket prices substantially once ticket sales reopen after Branson has completed his test flight, according to CNBC. (See SPCE stock analysis on TipRanks)
Cowen and Co. analyst Oliver Chen reiterated a Buy rating a month ago on the stock with a price target of $22 (31% downside potential). The analyst stated that the company is in the final innings of technological feasibility test programs and success should yield commercial operations and associated revenue generation.
Consensus among analysts is a Strong Buy based on 3 Buy ratings and 1 Hold rating. The average price target of $25.25 implies a potential decline of around 21% over the next 12 months.
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