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On Monday, Goldman Sachs reiterated a Neutral rating on Virgin Galactic (NYSE:SPCE), currently trading at $4.58 with a market capitalization of $187 million, maintaining a steady price target of $32.00. The firm’s analyst noted Virgin Galactic’s expectations to commence Future Astronaut sales in the first quarter of 2026 and to start commercial spaceflights by mid-2026. The company is actively working on its Delta Class spaceships to meet these timelines. According to InvestingPro analysis, the stock appears overvalued at current levels, with additional insights available in the comprehensive Pro Research Report.
The analyst pointed out that Virgin Galactic is currently using its cash reserves at a relatively quick rate when compared to its cash on hand, with InvestingPro data showing last twelve months revenue of just $5.51 million and a concerning negative free cash flow. While the company maintains a healthy current ratio of 3.81, indicating sufficient liquid assets to meet short-term obligations, this raises concerns about its ability to reach scale without the need for additional capital. Goldman Sachs highlighted the challenges in assessing the demand for Virgin Galactic’s services, which complicates the ability to predict the company’s revenue and potential profitability.
The financial institution’s stance remains unchanged due to the uncertainties surrounding Virgin Galactic’s business model and its cash burn rate. The company’s progress towards launching commercial spaceflights and sales of astronaut experiences is being closely monitored, but the difficulty in estimating consumer demand for these novel offerings is a key factor in maintaining the current stock rating.
Virgin Galactic’s stock is being watched by investors as the company advances towards its goals in the emerging commercial spaceflight industry, with recent volatility reflected in its remarkable 51.9% gain over the past week. However, the potential need for additional funding and the unclear demand for space travel experiences pose questions that are yet to be answered, leading to the maintained Neutral position by Goldman Sachs. For deeper insights into Virgin Galactic’s financial health score of 1.56 and additional analysis, investors can access the full range of metrics and ProTips through InvestingPro.
In other recent news, Virgin Galactic reported a first-quarter loss of $2.38 per share on revenue of $460,000, a decrease from $2 million in the previous year, due to a pause in commercial spaceflights. The company is focusing on building its new Delta Class SpaceShips, with plans for its first research spaceflight in the summer of 2026 and private astronaut flights in the fall of that year. Virgin Galactic’s cash position remains robust, with $567 million as of March 31, 2025, and a net loss narrowed to $84 million from $102 million year-over-year due to lower operating expenses. Adjusted EBITDA improved to -$72 million from -$87 million in the prior year. The company is also considering a second spaceport in Italy, which could enhance its operational capabilities.
Jefferies analyst Greg Konrad recently adjusted Virgin Galactic’s price target to $8.00 from $9.00 while maintaining a Buy rating. Konrad noted that Virgin Galactic is on track with its operational timeline, with significant milestones expected in 2026. The analyst emphasized the company’s secure financial position and the potential to achieve free cash flow positivity by 2027, contingent on meeting operational goals. Virgin Galactic’s steady progress in the first quarter and its plans to reopen sales in 2026 set the stage for future financial performance.
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