Virgin Galactic Share Price Continues to Tumble After UBS Downgrade
The Virgin Galactic share price looks set to end the week lower as it continues to struggle against a slew of negative publicity. The stock plunged 16% on Friday, 15 October, after investment bank UBS downgraded the stock from a “Neutral” to “Sell”. UBS also cut the one-year price target from $45 three months ago to $15. The stock continues to struggle a week after the downgrade.
The Virgin Galactic share price was already under pressure following decisions to make scheduling changes that could delay test flights. This delay further postpones the commencement of commercial services, with December 2022 suggested as a potential start date.
It is unclear if the changes to the test flight schedules are related to the recent exit of Mark Stucky, who had been with the company for six years. Stucky has now joined competing space tourism company Blue Origin, owned by billionaire Jeff Bezos.
The Virgin Galactic share price is down 2.33% as of writing this Friday.
Virgin Galactic Share Price Outlook
Friday’s decline has violated the support at 20.04. A full breakdown opens the door towards 15.05 (13 May low), which rhymes with the UBS 1-year target. The 3 April 2020 low at 12.27 marks an additional downside target if the stock’s price continues to decline steeply.
On the flip side, a bounce at the current resistance can attain the 23.79 resistance if there is sufficient bullish momentum. This move would cover the 15 October gap. 26.53 and 32.08 are additional price targets to the north.