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Investing.com - Morgan Stanley (NYSE:MS) has lowered its price target on Virgin Galactic (NYSE:SPCE) to $2.50 from $5.00 while maintaining an Underweight rating on the stock. The space tourism company, currently trading at $3.42 with a market capitalization of $142.19 million, has seen its EBITDA decline to -$337.93 million in the last twelve months.
The firm noted that Virgin Galactic remains on track for its Delta spacecraft’s entry into service in 2026, but now expects the first commercial research flight to occur in fall 2026 rather than summer as previously anticipated.
Morgan Stanley attributed the price target reduction to a schedule slip in Virgin Galactic’s commercial flight timeline, which pushes back potential revenue generation.
The investment bank acknowledged Virgin Galactic’s long-term potential in the space tourism sector but cited concerns about the company’s near-term outlook.
Morgan Stanley indicated it sees a "limited near-term catalyst path" for the company until spaceflights resume, supporting its continued Underweight stance on the stock.
In other recent news, Virgin Galactic Holdings Inc. reported its second-quarter 2025 earnings, highlighting a reduction in operating expenses and improvements in adjusted EBITDA. Despite these positive financial adjustments, the company’s stock experienced a decline in aftermarket trading. Virgin Galactic remains focused on its future commercial spaceflight operations, demonstrating significant progress in spaceship production. Additionally, the company has undertaken a strategic shift in resource allocation to better support its long-term objectives. Investors are closely monitoring these developments as the company continues to refine its operational strategies. While the earnings report showed financial adjustments, the market’s reaction underscores the complex dynamics at play in the space exploration sector. Analysts from various firms are likely evaluating the company’s trajectory in light of these recent updates.
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