Virgin Galactic Sinks After Top Two Analysts Cut Ratings
- Morgan Stanley is ‘waiting for fundamentals to catch up’
- Credit Suisse can’t keep recommending the stock after rally
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Shares of Virgin Galactic Holdings Inc. fell as much as 24% in early Thursday trading, the most ever, after downgrades from the two top analysts among the three that cover the stock, Morgan Stanley’s Adam Jonas and Credit Suisse’s Robert Spingarn. Both lowered their recommendations to the equivalent of neutral from buy.
Richard Branson’s space transport company has been popular among hedge funds and other investors who believe it will establish a new space-tourism industry. Shares had soared about 150% so far this year, even with a post-earnings dip earlier this week.