Virgin Galactic Holdings Inc (SPCE) has disclosed a new risk, in the Debt & Financing category.
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Virgin Galactic Holdings Inc. faces constrained operating and financial flexibility because its debt agreements impose restrictive covenants on actions such as incurring additional indebtedness, granting liens, making investments, or returning capital to shareholders. Noncompliance, potentially driven by adverse economic or industry conditions, could trigger defaults, accelerated repayment, and foreclosure on secured assets, materially weakening its financial condition and limiting its ability to capitalize on emerging opportunities.
The average SPCE stock price target is $4.00, implying 64.61% upside potential.
To learn more about Virgin Galactic Holdings Inc’s risk factors, click here.