New York (CNN Business) Virgin Galactic's stock is soaring after an analyst said its space planes could one day disrupt the air travel industry, potentially raking in nearly a trillion dollars a year in sales.

Virgin Galactic's SPCE The spaceflight's company stock surged 12% Monday after Morgan Stanley released a report predictingshares could rise as high as $60 over the coming years if the company successfully executes its business goals. The stock was sitting just below $8 before the report was released.

Galactic wants to transition from a space tourism company (it has still yet to fly any civilians into space, but it plans to soon) into a travel company. It intends to accomplish that by building space planes that send passengers on ultra-fast flights around the world.

"A viable space tourism business is what you pay for today," Morgan Stanley analyst Adam Jonas wrote in a note to investors. "But a chance to disrupt the multi-trillion-dollar airline [total addressable market] is what is really likely to drive the upside."

Galactic's stock had persistently fallen since it began trading on the New York Stock Exchange on October 28. Morgan Stanley set a near-term price target of $22 a share, which represents a 167% increase from Galactic's current level of $8.24. The firm believes the majority of Galactic's upside will come from its hypersonic point-to-point air travel rather than its space tourism business.

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