Canaccord Genuity says Virgin Galactic is a buy after successful test flight

Virgin Galactic pilots walk to the company's SpaceShipTwo Unity spacecraft, attached to the jet carrier aircraft Eve.
Virgin Galactic

Last weekend's successful test flight for Virgin Galactic should be the first in a series of positive events for the space tourism company, and investors should hop aboard, according to Canaccord Genuity.

Shares of the company jumped almost 28% on Monday after Saturday's test flight, erasing the year-to-date losses for a stock that had been under significant pressure.

Canaccord analyst Ken Herbert initiated coverage of the stock on Wednesday with a buy rating, saying in a note to clients that the company had several potential positive news events coming in the second half of the year.