British business tycoon and Virgin Galactic (SPCE) founder Sir Richard Branson has slammed U.S. President Donald Trump’s “erratic and unpredictable” tariffs that have upended the global economy.
“If we take Virgin, our cruise ships were booming, our airline was booming, our health clubs were full,” said Branson, referring to his diversified Virgin Group holding company. “They’re still okay but you sort of feel if he continues, he’s in such danger of doing so much damage in this world.”
Branson was speaking to the media at Virgin Atlantic’s unveiling of its Riyadh air travel route, which has launched from London’s Heathrow Airport. In wide ranging comments, the business leader said that many Americans are “incredibly sad” because of President Trump’s recent choices in economic policies.
Silver Lining
Despite his sharp criticism of U.S. trade policies, Branson said that his own company, privately held Virgin Group, sees some silver linings in the current environment. Moving forward, the Virgin Atlantic airline should benefit from a strong British currency, weak U.S. dollar, and lower fuel prices as crude oil declines, said Branson.
About 60% of Virgin Atlantic’s airline capacity is in the U.S. and focused on flying to American destinations. However, the carrier is diversifying and adding daily flights to Saudi Arabia’s capital city. Virgin also announced that it will start daily flights to South Korea, a route it expects will be used mainly by business travelers.
Branson founded Virgin Galactic, a British-American spaceflight company, in 2004. He and Virgin Group retain an 11.9% stake in Virgin Galactic, whose share price has declined 50% this year.
Is SPCE Stock a Buy?
Virgin Galactic has a consensus Hold rating among four Wall Street analysts. That rating is based on one Buy and three Hold recommendations assigned in the last three months. The average SPCE price target of $14.58 implies 397.61% upside from current levels.
