Shares of Virgin Galactic (NYSE: SPCE) stock soared 13.5% through 11:45 a.m. ET Monday, and for a most surprising reason: Investment bank TD Cowen lowered its price target on the space stock to $2 per share this morning.

Now why would investors look at this report and think it good news? Because despite the lower price target, Cowen says Virgin Galactic stock is still a buy.

As the analyst explains in a note covered on The Fly, Virgin Galactic confirmed in its last earnings report that it is on track to build two new Delta-class spaceplanes by early 2026. With two planes flying weekly, and charging more for tickets, the analyst anticipates Virgin Galactic will generate about $450 million in annual revenue and be free-cash-flow-positive to boot.

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Source Fool.com