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UBS analyst Myles Walton upgraded Virgin Galactic to Buy from Neutral with a price target of $36, down from $40. The analyst says the "price is right" with the stock down from 2021 highs on test flight delays.

The faster pace of the Blue Origin offering commercial service merits watching, but the "care being taken on pricing and price discovery in the near-term," as illustrated by the $3M current bid price for the first Blue Origin seat with three weeks left of bidding, is encouraging, Walton tells investors in a research note.

The analyst remains positive on the fundamentals of Virgin Galactic's offering as well as the "scarcity of the experience" provided to customers.