Virgin Galactic price target lowered to $2.30 from $2.50 at Morgan Stanley

Morgan Stanley lowered the firm’s price target on Virgin Galactic (SPCE) to $2.30 from $2.50 and keeps an Underweight rating on the shares after the company announced a multi-step capital realignment on December 9, including the repurchase and retirement of about $355M of its 2.5% 2027 convertible notes; the issuance of about $203M of 9.8% notes due in 2028; and selling $46M of its common stock. The capital realignment removes near-term debt pressure and extends the runway into 2028, but renews investor questions around commercialization timing, the analyst tells investors.