Virgin Galactic Holdings (SPCE – Research Report), the Industrials sector company, was revisited by a Wall Street analyst today. Analyst Oliver Chen from TD Cowen maintained a Buy rating on the stock and has a $2.50 price target.
Oliver Chen has given his Buy rating due to a combination of factors that highlight Virgin Galactic Holdings’ potential in the nascent space tourism industry. Chen acknowledges the company’s first-mover advantage, with a competitive edge due to its high barriers to entry and unique customer-centric approach that includes frequent engagement with clients before and after spaceflights. Virgin Galactic has already sold 800 seats, demonstrating significant market interest, and the company’s ability to scale operations to weekly flights by the second half of 2026 hinges on the production of the VSS-Delta spaceships, which promise better unit economics.
Chen’s optimism is further buoyed by the company’s luxury-focused business model, which sets it apart from competitors like Blue Origin. The analyst notes Virgin Galactic’s attractive horizontal takeoff system and the absence of ticket sales by competitors outside of private auctions. Despite minimal revenue generation to date, Virgin Galactic’s strategic management of its $1.1 billion cash reserve and its focus on achieving engineering milestones for increased flight frequency are seen as crucial. The planned increase in flight capacity with the VSS-Delta spacecraft and the anticipated high profit margins underscore the company’s potential for significant revenue growth and scalability.
Chen covers the Consumer Cyclical sector, focusing on stocks such as Sally Beauty, Macy’s, and Levi Strauss & Co. According to TipRanks, Chen has an average return of 5.0% and a 51.91% success rate on recommended stocks.
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Virgin Galactic Holdings (SPCE) Company Description:
Virgin Galactic Holdings Inc is a United States-based vertically-integrated aerospace company pioneering human spaceflight for private individuals & researchers, and it also manufactures advanced air and space vehicles. Using its technologies, it is developing a spaceflight system designed to offer its customers a unique, multi-day, and transformative experience. This culminates in a spaceflight that includes views of Earth from space and several minutes of weightlessness that will launch from Spaceport America, New Mexico.
Read More on SPCE:
- Virgin Galactic reports completion of eleventh successful spaceflight
- Apple downgraded, Home Depot upgraded: Wall Street’s top analyst calls
- Virgin Galactic upgraded to Hold from Sell at Truist
- Virgin Galactic announces January Commercial Flight
- Virgin Galactic Stock (NYSE:SPCE): Is Branson’s Plug Pull the Final Blow?
