Virgin Galactic price target lowered to $5 from $35 at Morgan Stanley

Morgan Stanley analyst Kristine Liwag lowered the firm’s price target on Virgin Galactic to $5 from $35 and keeps an Underweight rating on the shares. Virgin completed its last flight in June of this year and does not plan to return revenue-generating passengers to the sky until about 2026, notes the analyst, who argues that the stock’s year-to-date slide of about 85% reflects the realization that the business model and attractive economics are premised on delivering a new fleet on schedule and at cost. The firm sees limited catalysts in the near-term as the company focuses on delivering its first production-class spaceship, the first new Delta-class spaceship, which is expected to come online in 2026.