Analyst Oliver Chen of TD Cowen maintained a Buy rating on Virgin Galactic Holdings (SPCE – Research Report), with a price target of $4.50.
Oliver Chen has given his Buy rating due to a combination of factors including Virgin Galactic Holdings’ strategic progress and future plans. The company is transitioning from the design phase to the build and test phase, aiming for sustained commercial service by the second half of 2026. Despite current financial challenges, such as negative free cash flow and upcoming convertible note maturities, Virgin Galactic’s liquidity position remains strong with substantial cash reserves.
Key to this rating is the company’s goal to build and test two Delta Spaceships by 2025, which are crucial for scalable commercial operations. The successful completion of design and infrastructure build, along with plans for commercial flights in 2026, supports the potential for positive adjusted EBITDA operations. The expected revenue and profitability from these operations, coupled with a backlog of private astronaut ticket sales, underpin the optimistic outlook. However, the price target reflects both the promising future and the inherent risks until commercial service resumes.
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