Delayed Flight Ramp and Deferred Second Vehicle Drive Prolonged Profitability Timeline and Support Sell Rating

In a report released on April 2, Kristine Liwag from Morgan Stanley maintained a Sell rating on Virgin Galactic Holdings, with a price target of $2.05.

Kristine Liwag has given his Sell rating due to a combination of factors tied to slower-than-expected operational ramp-up and revised growth assumptions. The path to higher flight cadence has been pushed out, with the model now assuming the company reaches roughly 10 flights per month only in the second half of 2027, which delays revenue scaling and extends the timeline to meaningful profitability.

In addition, the introduction of a second launch vehicle has been deferred to around 2030, with meaningful scaling only starting in 2031, resulting in fewer total flights over the forecast horizon. While higher ticket pricing assumptions partially offset the impact, increased capital expenditures for fleet expansion and new vehicle development, coupled with positive EBITDA not expected until 2028 and free cash flow only in 2030, support a cautious stance and underpin the $2.05 price target and Sell recommendation.

In another report released on April 1, TipRanks – PerPlexity also reiterated a Sell rating on the stock with a $2.50 price target.

SPCE’s price has also changed moderately for the past six months – from $4.040 to $2.460, which is a -39.11% drop .