Virgin Galactic Enters 'Catalyst-Light' Period, Analyst Slashes 2024 Forecasts
Portfolio Pulse from Priya Nigam
Virgin Galactic Holdings Inc (NYSE:SPCE) shares fell in premarket trading as Morgan Stanley analyst Kristine Liwag downgraded the stock from Equal-Weight to Underweight and cut the price target from $4.00 to $1.75. The downgrade follows the company's decision to pause revenue-generating space flights to conserve cash and focus on developing its Delta-class fleet. Liwag notes that Virgin Galactic has successfully completed five missions since late June 2023 but anticipates a 'catalyst-light period' with limited flights planned for the first half of 2024 and a halt in revenue flights until around 2026.
November 22, 2023 | 4:19 pm
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Virgin Galactic's stock was downgraded by Morgan Stanley with a significant price target reduction, indicating a bearish outlook due to the company's decision to halt revenue flights and focus on development.
The downgrade by a major analyst, coupled with the reduction in price target and the company's decision to pause revenue-generating flights, suggests a negative short-term impact on SPCE's stock price. The focus on development over revenue in the near term may concern investors about the company's financial health and growth prospects.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100