Here's what Branson's successful space trip means for Virgin Galactic shares

Published Mon, Jul 12 202110:09 AM EDTUpdated Mon, Jul 12 202111:10 AM EDT

Jesse Pound @/in/jesse-pound @jesserpound

Virgin Galactic 's successful launch of its billionaire founder into space was greeted with a cautious reaction by the stock market. Shares of the space exploration company fell 10% Monday morning , as the company announced that it would sell up to $500 million in additional shares to help fund its growth after Sunday's flight. Wall Street analysts viewed the flight as a positive for the stock, but it didn't appear to be enough to change the minds of some of Virgin Galactic's skeptics. Here's what some of the top analysts had to say. Bernstein's Douglas Harned, who has a market perform rating on the stock, said in a note that the flight was "symbolically important for building consumer confidence in and demand for space tourism" and could create a short-term boost for the stock. "We expect a large amount of media coverage and publicity around space tourism over the next few weeks, coupled with potential new ticket sales for Virgin Galactic and Blue Origin. The flight's success and subsequent ticket sales could well be an upward short-term catalyst for the stock," the note said. Truist's Michael Ciarmoli, who has a buy rating on the stock, said the flight was a major step for the company. "We view the successful completion of the VSS Unity's latest test flight on July 11, with a full crew including Richard Branson on board, as another significant milestone for the company both from an operational and marketing perspective," the note said. On the other hand, Bank of America said the flight confirmed that Virgin Galactic was on track with its plan to bring customers into space but that it wasn't enough to move the firm from its underperform rating. "We believe the current valuation more than reflects the underlying financial fundamentals and gives the company a more than healthy multiple premium for potential growth," the note said. After the flight returned to Earth, Virgin Galactic announced that it would hold a sweepstakes for two tickets for upcoming voyages but did not open ticket sales. Canaccord Genuity's Ken Herbert, which has a buy rating on the stock, said that was a sour note for the day. "While Branson did accompany his return to Earth with an extensive press conference and marketing blitz featuring a musical performance by R & B star Khalid and a pinning of astronaut wings by Canadian astronaut Chris Hadfield, his teased 'major announcement' was somewhat disappointing," the note said. Shares of Virgin Galactic have been extremely volatile this year, having more than tripled over the last two months, but still traded below their peak from February. -CNBC's Michael Bloom contributed to this report.

Sir Richard Branson speaks after he flew into space aboard a Virgin Galactic vessel, a voyage he described as the "experience of a lifetime" and one he hopes will usher in an era of lucrative space tourism at Spaceport America, near Truth and Consequences, New Mexico on July 11, 2021.

Patrick T. Fallon | AFP | Getty Images

Virgin Galactic's successful launch of its billionaire founder into space was greeted with a cautious reaction by the stock market.

Shares of the space exploration company fell 10% Monday morning, as the company announced that it would sell up to $500 million in additional shares to help fund its growth after Sunday's flight.

Wall Street analysts viewed the flight as a positive for the stock, but it didn't appear to be enough to change the minds of some of Virgin Galactic's skeptics.

Here's what some of the top analysts had to say.