The Wall Street Journal reported that Virgin Galactic’s (NYSE:SPCE) spacecraft was in the air for a test operation last month. This has given hope that the aerospace and space travel company could be inching closer to its first commercial flight.
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It’s worth highlighting that Virgin Galactic gained popularity in 2021 after it took its founder, Richard Branson, on a space trek. However, the prolonged downtime following Branson’s flight has hurt the company’s stock price, which is down about 53.3% over the past year.
Further, the widening of losses and Branson’s stake sale have made matters worse. SPCE’s losses increased to $500 million in 2022, compared to $353 million in 2021. Further, the company’s billionaire founder sold $300 million worth of his stake in the space tourism company a couple of years ago.
Nonetheless, SPCE’s CEO, Michael Colglazier, said during the Q4 conference call that the company is progressing well and is on track for commercial service in the second quarter of 2023.
Colglazier said, “We expect to commence commercial service in Q2, beginning with a research focus flight with the Italian Air Force, followed by regular private astronaut and research missions thereafter.”
What’s the Prediction for SPCE Stock?
Analysts are skeptical about the company’s prospects. SPCE stock has received three Hold and four Sell recommendations for a Moderate Sell consensus rating. Despite the recent drop in its price, analysts’ average price target of $3.42 implies a further downside potential of 5.26% from current levels.
